On your 2019 income tax return, if you did not enter that you stopped or closed your business, the business information transferred to your 2020 income tax return.
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
- With your return open, search for business (schedule c). Be sure to include the parentheses.
- Select the Jump to link in the search results.
- On the Your 2020 self-employed work summary screen, select the trash can icon next to the defunct business.
- Answer Yes, delete this info to confirm the removal of all business-related forms.
The 1099-NEC form specifically reports Nonemployee Compensation which you may have gotten in previous years on a 1099-MISC. So, if you're self-employed and worked as a freelancer or contractor last year, you probably got a 1099-NEC reporting how much money you were paid in box 1.
Self-employment income:
- Is money you earn as a contractor, consultant, freelancer, or other independent worker.
- It's reported on 1099-NEC (Box 1), 1099-K (Box 1a), or as cash, check or credit card sales transactions.
- Requires you to complete Schedule C.
- You can deduct expense related to the income.
- Requires you to pay self-employment tax.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
