Turbo Tax Self Employment Calculation Error

[otoole78]

For 2020 we received a 1099-NEC (new form for this year), in prior years we had received a 1099-MISC for this income.  With the update to 1099-NEC for 2020 Turbo Tax is no longer calculating Self Employment tax as part of this income and understating my Total Tax for 2020.  How can I get this fixed?

[Bsch4477]

Be sure that the income from 1099-NEC is flowing to your Sch C. 

[otoole78]

The income is making it to part I of schedule 1 but not making it to schedule C.  What would be the reason for that?  Thanks for your help. 

[Bsch4477]

When you report your 1099-NEC income you follow the prompts to report income and expenses on Sch C. 

[otoole78]

Yes, I answered those questions (no uncommon situations and no expenses to report).  I have re-tried and still not making it to schedule C.

[Bsch4477]

I assume that you have completed the business section with Businesses Profile, etc. Then in Business Income and Expenses click Business Income and report the 1099-NEC. 

[otoole78]

Yes, I have filled out those sections.  If I report this as 1099-MISC then it gets correctly reported on the schedule C, it is when I input this income as from 1099-NEC that it does not carry forward to schedule C.  1099-NEC is the correct income form - I was just checking if 1099-MISC would work and it does.  Does that information help with anything?

[JMoney99]

This is an error in TT.   After entering the 1099-NEC, TT asks if you would like to deduct expenses.  If you select No, the income does not go to Schedule C and therefore does not go to Schedule SE.  The result is under reporting the amount of SE Tax.

The workaround is to answer Yes, I have expenses to deduct.  This will create a Sched C.  You do not have to enter any expenses.  The profit from Sched C will flow to Sched SE and will calculate SE Tax.

Turbo Tax needs to fix the error.