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saxguy
New Member

Confused about Filing my business closed at end of 2020

Hello,

 

Turbo Tax seems to want to know if I closed my business for the previous year (2020) but I stayed open and did a little business until Dec 31 2020.

 

So, I didn't mark business was closed and figured that would be something I would do on next year's return. I then submitted to Federal. I have held on the State submission however. 

1) Was this correct to file at this time? Did I choose right by not selecting that box?

 

California wants a Tax ($800) for business AHEAD of time. I don't want to have this business in 2021 but I do have to file my 2020 taxes to the state.


How should I proceed using Turbo Tax? California law says to write "FINAL" at the top of the form but I don't see this as an option if I do all digitally in TurboTax

I appreciate a little direction and thanks

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2 Replies
ColeenD3
Expert Alumni

Confused about Filing my business closed at end of 2020

Normally, this would be the right way to do it; close it in 2021, but CA is creating a problem. Amend your Federal return and indicate that you did, in fact, close it in 2020.

saxguy
New Member

Confused about Filing my business closed at end of 2020

Let me amend that. I do intend to operate the same business in another state so would still expect to pay taxes in 2021 on this business.

 

 Just not in California.

 

I hope this makes sense

 

 thank you!

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