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Self employed
Yes, if your self-employed business was not active in current tax year, you can file a final Schedule C in your tax return. Since the client corrected Form 1099-NEC to remove the income reported in error, you would not report that information on Schedule C. Be sure to keep both copies of Form 1099-NEC as proof should you hear from the IRS about unreported income (unlikely).
Rather than simply deleting Schedule C this year, work through the business interview in TurboTax and check the box for "I sold or otherwise disposed of this business during 20XX" on the page "Tell us More About Your Business." TurboTax will guide you through the process of closing out Schedule C, including disposing of any assets you may have been depreciating (equipment, for example). Completing this section will file a final Schedule C but will not carry the form over to next year.
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