Question

How do I report in my taxes for an MLM I didn't work in after I got divorced and my ex kept the business? I was not involved in the year at all but was still technically on the license for a few months into the year.

Forum|Forum|4 years ago
January 19, 2022
1 reply
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I had an MLM business with my now ex-spouse for a few years and made some income in it. In January 2021, I got divorced, but had stopped working in the business as soon as the year started since my ex and I had agreed that they would keep the business. But the MLM didn't officially remove my name from the business until a few months after the divorce was final. So I never did anything at all in 2021, but my name was still on the license for about 3 months.

What is the right way for me to report this business on my taxes? I have not entered any income or expenses, and entered that I stopped working in 2021, but since I was still technically on the license, I'm not sure if I have to report anything. My ex will be reporting it on their taxes so I assume I don't need to do anything else.

When I go to TurboTax to complete my taxes, it still wants me to report income and expenses for the business, but I don't have income to report, since my ex ran the whole business and is the one who will get the 1099-NEC and any direct cash payments. But, it seems to automatically pull forward the inventory from my 2020 tax return, a year when I did actively work the business, and it counts that inventory as an expense.

What is the right way to go about this? Have I done it right or am I missing anything?

TurboTax Self Employed Online

Critter-3

First if the TT account you are working in was the same one you filed with your spouse in the past where you filed jointly then you really should no longer be using that account especially if you were the second person listed on the return ... it can be difficult to remove all the spouse's info. Start a new account with a new user name and password.

Next how was this reported in the past ? Did you each have your own Sch C on the return ? Was it all reported under just your SS#? Whose SS# will the 2021 1099 be reported ?