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To enter your 1099-NEC onto Schedule C, follow the steps below.
We'll automatically complete Schedule C when you set up your self-employment work in TurboTax or when you enter what the IRS considers self-employment income, which is usually reported on Form 1099-NEC or 1099-MISC.
Schedule C is supported in TurboTax Self-Employed (both online and in the mobile app) and in all personal 1040 versions of the TurboTax CD/Download software.
To set up your business:
When I follow your instructions and click on Update on the Business Income line, the next Business Income page has lines for 1099-NEC and 1099-MISC. But when selecting first one, it asks "did you receive income from this farm reported to you on" the NEC form? But the when selecting the second one, it seems it's the only place that I can include the NEC income from the two different companies for the work I performed in 2020. In 2019, I received this income on the 1099-MISC form. Should I proceed as if I received the MISC instead of the NEC?
No, you should not. Let's try a different way.
In order to link your Form 1099-NEC correctly to the Schedule C, you will need to enter the information in both Form 1099-NEC and Schedule C sections. You would start from the 1099-NEC section under "1099-MISC and Other Common Income". You would then follow prompts to tell the program you are filing a Schedule C. As it creates a Schedule C for you, you will need to go to the Schedule C portion separately to confirm your income amount, add related expenses and complete required information.
In TurboTax online, here are the steps:
Then
Your self-employment net profit will show on your Schedule 1 line 3 and line 8 of your Form 1040.
Beginning with the 2020 tax year, the IRS will require business taxpayers to report nonemployee compensation on the new Form 1099-NEC instead of on Form 1099-MISC. Businesses will need to use this form if they made payments totaling $600 or more to a nonemployee, such as an independent contractor. This was done to help clarify the separate filing deadlines on Form 1099-MISC and the new 1099-NEC form will be used starting with the 2020 tax year.
I received two 1099nec forms from two sources of self-employment. The solution you outlined does not seem to work for me in the app version of Home & Business 2020 TT because after following the suggestion to search on "1099nec" and following one of two "prompts" just brings me back to either "Update" for 2020 income, since I had the same source for 1099-MISC 2019 income, or "Continue." In either case, it brings back to same place. When then searching on "Schedule C" and jumping to it, I get the same screen(s). So I decided to add a "new business" and I was prompted to create it even though one of my sources of income is not new. Otherwise, if I was prompted to "Update" the 2020 income and clicked on it, I was asked if if was for farm income, which is not. After clicking on "no", it returned to the previous screen. I recommend this area should be simplified by asking if the income being reported is for same source of income from the previous year.
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