At least if I understand correctly, you question is really about converting the "\n" escape sequence into a new-line character. That happens at compile time, so if (for example) you enter the "\n" on the command line, it gets printed out as "\n" instead of being converted to a new-line character.
I wrote some code years ago to convert escape sequences when you want it done. Please don't pass it as the first argument to printf though. If you want to print a string entered by the user, use fputs, or the "%s" conversion format:
int main(int argc, char **argv) {
if (argc > 1)
printf("%s", translate(argv[1]));
return 0;
}