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Deductions & credits
@VolvoGirl wrote:
@Opus 17 Just thinking.....what if the return is more than the income reported in 2021? Can you have a negative gross income on line 7? Since it's for different years I might be inclined to add it as a misc expense with a description.
Why not? If you were a store and you had a clearance sale or going out of business sale or were selling below cost to build your business (*cough*Amazon*) your COGS might be more than your revenue.
I'd be inclined to list it as a refund and see if Turbotax complains. (It also depends on whether the consultant did other work in 2021, in which case there wouldn't even be a negative number. The taxpayer hasn't told us about their whole business, just this one client.)
‎December 8, 2021
2:28 PM