TurboTax Bug for1099-NEC, selecting "This was money from a lawsuit settlement"

[wenhaocen]

1. Enter a 1099- NEC form

2. Select "This was money from a lawsuit settlement"

3. "no" for the question of "was any part of the lawsuit settlement from back wages"

4. Next

5. Notice that it says "MISSING INFO!" under "Related to" in the summary screen. 

[MindyB]

We'd love to be able to help you with your tax question, but I am unable to replicate the error you are seeing.  Make sure you enter the payer's name and EIN.

You can also try to clear your cookies and cache.  Here is how to do that: How to clear your cache

[wenhaocen]

Thanks for looking into this. Seems like you're trying it in the webpage version. However, I'm using the desktop version (Windows OS).  Please see the attached screenshot. 

I've already made sure I input payer ID and name, etc. 

[PatriciaV]

You may wish to delete the entry for Form 1099-NEC and try entering it again. The answers are fairly straight-forward when the income isn't related to back wages. So maybe the program hiccupped at some point. Give it another chance.

[wenhaocen]

Just deleted it and added it from scratch. Still same result. 

[DawnC · Accepted solution]

Answer YES to the back wages and then when it asks how much was for back wages, enter zero.   That will report as Other Income on Schedule 1.    They should have issued you a 1099-misc.   The IRS may inquire as to why this income is not on Schedule C since you received a 1099-NEC (non-employee compensation).   

The missing information error is TurboTax wanting you to prepare Schedule C for the 1099-nec income.   Entering as above reports it as Other Income.  

If it does belong on Schedule C - enter it through the self-employment income entry screen.   Search for Schedule C and set up your business return.   If it is not self-employment, answer YES to the back wages question, and enter zero for the amount of back wages.  

[wenhaocen]

Thank you. will do that. For my scenario, it isn't a contracting business; it's a settlement from a lawsuit, but not related to back wage. 

[DawnC]

You are welcome and I understand.   Not sure why they gave you a 1099-nec, but you can use that workaround to get it reported as Other Income (not self-employment).