You don't have a need for a software serial implementation. The Mega has 3 additional hardware serial ports and you already are using the pins of one of them.
the serialEvent() function is called when there is data available on Serial
the serial1Event1() function is called when there is data available on Serial1
Note the names of the functions and the serial interfaces they relate to and look carefully at your code
See serialEvent() - Arduino Reference
Having said that, don't bother with the event() functions. Just test in loop() for data being available on the serial interface being used
I'm pretty sure it is defined as (RX,TX) not the other way around. You shouldn't be using swSerial anyway as was mentioned, and when you just connect TX to RX i suppose it doesn't really matter which is which. But anyway.