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February 8, 2021
Question

Why am I getting a schedule C 1099-nec to correct when Turbo Tax checks everything at the end when I do not have one this year? I didn't enter one and deleted last years

  • February 8, 2021
  • 1 reply
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I had one last year and it carried over the information in my incomes with my W-2s from last year when starting this years. I deleted it but Turbo Tax still thinks I have one this year.

1 reply

February 8, 2021

Your Schedule C carried over because you did not indicate that you "closed your business in 2020". You stated you deleted the Schedule C but you have to remove all business related forms, also.. Try the following steps to delete your business that transferred over from your 2019 return but you no longer have that business. 

 

  1. With your return open, search for business (schedule c). Be sure to include the parentheses.
  2. Select the Jump to link in the search results.
  3. On the Your 2020 self-employed work summary screen, select the trash can icon next to the defunct business.
  4. Answer Yes, delete this info to confirm the removal of all business-related forms.

You may also need to delete form 1099-NEC or form 1099-MISC. Here's the general procedure for viewing the forms list and deleting unwanted forms, schedules, and worksheets in TurboTax Online:

  1. Open or continue your return in TurboTax.
  2. In the left menu, select Tax Tools and then Tools.
  3. In the pop-up window Tool Center, choose Delete a form.
  4. Select Delete next to the form/schedule/worksheet in the list and follow the instructions.

When you get form 1099-NEC, that means you're self-employed, an independent contractor, a sole proprietor. When you're self-employed, the IRS makes you fill out Schedule C, Profit or Loss From Business. It's as if you have your own company.

  • This includes any part-time businesses or private “side jobs” where you’re performing services in addition to a regular job or business.

When you’re paid this way, there’s no withholding taken out of your income, which means you’ll pay both self-employment tax as well as income tax.

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