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.)