Is anyone else having issues with TurboTax generating a Schedule C form if they received a 1099-NEC form late?

Forum|Forum|3 years ago
March 3, 2023
1 reply
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Note: I didn't use TurboTax business because I didn't know I would be receiving a 1099 for a settlement.

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SharonD007

Based on your inquiry, I assume that you received the 1099-NEC form for a settlement and that you have not already filed your 2022 tax return. You do not need a Schedule C for a taxable settlement. That income is reported as other income.

Follow the steps below to enter your 1099-NEC:

Launch TurboTax
Search for 1099-NEC with the magnifying glass tool at the top of the page
Click on the Jump to 1099-NEC link at the top of the search results
Click Add a 1099-NEC
Enter the information as shown on your form
Type Settlement on the screen that says “Describe the reason for this 1099-NEC”
The next screen will say “Does one of these uncommon situations apply?” Select “This was money from a lawsuit settlement” and answer the question “Was any part of the lawsuit settlement for back wages?”

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calebphenryAuthor

Hi Sharon,

I had actually submitted my 2022 taxes and am trying to amend my return. Unfortunately, while amending it seems that TurboTax requires a Schedule C and won't let me proceed.

Vanessa A

This is because you are entering it as a 1099-NEC which is for non employee compensation and should only be issued to subcontractors. The easiest way to resolve this is to go to Tax Tools>>Tools>>Delete a Form>>Delete Schedule C and the 1099-NEC.

Then to enter the income (If the way described above is not working for you) you can select the following: