I stopped doing freelance work midway through 2023 when I got a fulltime job. Do I just delete that source of income? What other changes do I need to make?

[mscottwhitson]

I was self-employed for over 20 years, working as a freelance photographer and designer. Then in April of 2023 I got a full-time job at an agency (for which I receive a W-2). Since I was still self-employed for part of 2023, I had freelance income (1099-NECs) to report. In 2024, I only worked at my full-time agency job. I did not take on any freelance work, and had no other sources of income. For my 2024 taxes, can I just simply delete that source of income and proceed as if it never happened, or are there additional steps needed in order to fully close the door on that line of work? *One other factor in play* -- one of my former freelance clients mistakenly sent me a 1099-NEC for 2024. When I contacted them about the error, informing them that I didn't perform or receive payment for any freelance work in 2024, they sent me a "Corrected" 1099-NEC with a $0.00 total. So do I still need to keep that self-employed Photography/Design line of work on my 2024 taxes just to include that form? Or can I delete that line of work and ignore the 1099-NEC since there was no actual work performed and no income received? Any legit/official input or guidance you can provide would be GREATLY appreciated. Thanks!

[PatriciaV]

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.