1099-NEC

The message you are seeing in TurboTax may be trying to tell you that there is not a problem with the Form 1099-NEC itself, but it needs to be tied to specific Schedule C business (or Schedule F farm).

Form 1099-NEC is used to report self-employment or independent contractor income when you are being paid by a company not treating you as their employee.  

Income from being self-employed or an independent contractor should be reported on Schedule C Business Income and Expenses. 

So, to enter a Form 1099-NEC, you first need to create a Schedule C for your business and then enter the Form 1099-NEC within that same section of your return.  

Use these steps to go to the Schedule C section of your return and get started.  

• On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
• This opens a box where you can type in “schedule c” and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
• The search results will give you an option to “Jump to schedule c”
• Click on the blue “Jump to schedule c” link

Once you have started the Schedule C, continue through that section to Add Income and enter the Form 1099-NEC plus any other income you received for that self-employed business.  

Don't forget you can also claim expenses related to your business.

For more details and information, take a look at the following TurboTax article:  What is Form 1099-NEC?