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
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.
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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