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Returning Member
posted Mar 29, 2022 11:06:30 PM

Recived 1099-NEC

I Recived a payment with attached 1099-NEC from a FTC vs Amazon Lawsuit with Amazon Flex failed to pay the full amount of the tips to thier drivers witch are self-employed (Uber like).

After Entering the form in to turbo tax with the amount and clarifing that was a back wage from a law suit in the selection, it's keep asking me on the review to fix the error- Link to schedule C is missing and check other income or unchecke back wages?

 

Any suggestions,

Thanks 

 

0 3 610
3 Replies
Expert Alumni
Mar 30, 2022 4:31:44 AM

Can you please confirm if you are entering the information with the following steps:

  1. Click on Tax Home from Left Side Menu.
  2. Click on Wages & Income from Main Screen.
  3. Scroll down till you see the section titled "Other Common Income". Within this section, click on Start/Revisit next to Form 1099-NEC.
  4. Answer the question about who received the 1099-NEC and who paid you.
  5. Fill in the amount from Box 1.
  6. Describe the reason for this 1099-NEC as Class Action Lawsuit.
  7. Does one of these uncommon situations apply? - Select This was money from a lawsuit settlement.
  8. Select Yes on the question about if the lawsuit settlement was for back wages.

Once you do this, it should not Link to the Schedule C.

 

Please visit How do I view and delete forms in TurboTax Online for steps on how to delete a Form. Use these steps to delete the relevant Schedule C created and you should be able to proceed.

 

 

Returning Member
Mar 30, 2022 8:37:36 AM

Yes all the exact steps and still the same error.

Expert Alumni
Mar 30, 2022 8:58:02 AM

Even though it was from a lawsuit, it was actually recovery of your business income.  To take only one more action for this income you can use the following steps which should clear your error.

 

 You should delete the Form 1099-NEC, then enter the income directly following steps below. 

 

Here's the general procedure for viewing the forms list and deleting unwanted forms, schedules, and worksheets in TurboTax Online:

  1. Open or continue your return in TurboTax.
  2. In the left menu, select Tax Tools and then Tools.
  3. In the pop-up window Tool Center, choose Delete a form.
  4. Select Delete next to the form/schedule/worksheet in the list and follow the instructions.

As far as recording your income, you do not have to enter the Form 1099-NEC directly. It's a convenience but not a requirement. Follow the steps below to enter your business income (it is not 'Other' income).  This will allow you to complete your return without error.  Keep this document with your tax files.

 

You can also choose to enter this as a cash payment of business income by selecting Other self-employed income, includes 1099-K, cash, and checks (if you choose this, delete the 1099-NEC).  See the image below from online, but it's similar in desktop.