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feliciabergstrom
Returning Member

I was briefly self employed in 2015. I was paid in 2016. Turbo tax asks if I started working in 2016, and stopped working in 2016. Neither apply. What do I do

 
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MichaelMc
New Member

I was briefly self employed in 2015. I was paid in 2016. Turbo tax asks if I started working in 2016, and stopped working in 2016. Neither apply. What do I do

You started the business in 2015, so the answer to "did you start the business in 2016" is clearly no.

Since, as an individual, you are a cash method taxpayer (I'm assuming you did not elect accrual method for your self-employed business) and you were receiving money in 2016, I would suggest that you stopped working in that business in 2016.

The questions have minimal impact in a short-lived business. They are mostly there for the purpose of releasing deferred losses and terminating the service life of depreciable assets.

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1 Reply
MichaelMc
New Member

I was briefly self employed in 2015. I was paid in 2016. Turbo tax asks if I started working in 2016, and stopped working in 2016. Neither apply. What do I do

You started the business in 2015, so the answer to "did you start the business in 2016" is clearly no.

Since, as an individual, you are a cash method taxpayer (I'm assuming you did not elect accrual method for your self-employed business) and you were receiving money in 2016, I would suggest that you stopped working in that business in 2016.

The questions have minimal impact in a short-lived business. They are mostly there for the purpose of releasing deferred losses and terminating the service life of depreciable assets.

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