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Level 1
posted Apr 25, 2021 11:17:21 AM

Does TurboTax automatically file as self-employed when it was how I filed in years past? I no longer need to file as self-employed.

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1 Best answer
Expert Alumni
Apr 25, 2021 11:44:26 AM

Yes, unless you mark the box that said you closed the business.

 

Don't delete your business if it closed sometime in 2020. Instead, report the business and make sure you select I stopped [your business] in 2020 on the Tell us about how long you've worked in [your business] screen.

Otherwise, follow these instructions to delete a business that transferred over from your 2019 return but is no longer owned by you as of January 1, 2020.

Instructions

  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.

7 Replies
Expert Alumni
Apr 25, 2021 11:44:26 AM

Yes, unless you mark the box that said you closed the business.

 

Don't delete your business if it closed sometime in 2020. Instead, report the business and make sure you select I stopped [your business] in 2020 on the Tell us about how long you've worked in [your business] screen.

Otherwise, follow these instructions to delete a business that transferred over from your 2019 return but is no longer owned by you as of January 1, 2020.

Instructions

  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.

Level 1
Apr 25, 2021 12:04:39 PM

Thank you so much for your reply! I had no idea how to make that change. As a matter-of-fact, I was not self-employed for 2019 either. Should I do an ammendment or just take care of it for this tax year? 

Expert Alumni
Apr 25, 2021 12:15:55 PM

Just take care of it now. There is no reason to amend.

New Member
Feb 4, 2022 4:34:50 PM

Hello,

 

I was not self-employed for 2021. I deleted the "Self-employment income and expenses" as instructed in this message however, the system continues to ask for me to select one of the "self-employed" options as my option. Please help with how to remove this option and return to turbotax deluxe.

Expert Alumni
Feb 4, 2022 8:14:54 PM

There is a new feature this year that helps people downgrade their return if they are not longer self-employed.

  1. Click on Tax Tools near the bottom of the left side menu.
  2. All the way at the bottom, select Return to Free.
  3. The next screen explains the program will keep most of your information, but you may need to re-enter some of it. 
  4. Once you confirm that is what you want to do, you will be taken back to the beginning of the return and you will need to review and possibly re-enter some of your information. 

New Member
Mar 25, 2022 10:16:41 PM

I was not self-employed in 2021.I had hoped that by filling out the form and showing there was no self-employment listed I would be shifted to a different option, but now I seemed to be locked into having to pay for a self-employment return, and Tax Tools does not show up on my screen anymore. How do I correct this?

Expert Alumni
Mar 26, 2022 6:03:03 AM

Tax Tools only appears if you are logged into TurboTax Online and have started your return. Once you see your Federal Refund (or Tax Due) in the header, look for Tax Tools in the black column on the left of your screen. Then follow the instructions above from Expert JulieS.