Per Form 1099-MISC form instructions, "shows income as a non-employee under a non-qualified deferred compensation plan (NQDC) that does not meet the requirements of section 409A. This amount is also included in box 1, Form 1099-NEC as non-employee compensation. Any amount included in box 12 that is currently taxable is also included in this box. This income is also subject to a substantial additional tax to be reported on Form 1040."
Enter the amount from the 1099-NEC, box 1, on the Miscellaneous Income screen (Screen 14.1) in the Other Income (Ctrl+E) field. The income from the amount in box 14 is included in 1099-NEC, box 1.
However, the additional tax must be calculated and entered on the Schedule J, Recapture, Other Taxes screen (Screen 45.3), in the Other Taxes section under the heading Section 409A Tax.
Lacerte will calculate the additional tax if the NQDC income was entered on the Wages screen (box 12, Code Z). Since the income was reported on a 1099-NEC and 1099-MISC, you must manually calculate and enter the tax.