AL Form 40 Page 2 Line 2

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Turbo Tax is putting a 0. in this field. Alabama is rejecting my taxes because

"AL40-197 - 'If Form 40, Page 2, Line 2 (Business Income or Loss) is populated then the Federal Schedule C or Federal Schedule C-EZ must be populated.'"

On the Forms screen, I cannot just delete the entry. Seems AL is expecting nothing for a value of 0 instead of a value of 0.

LenaH

Alumni - Expert

If you are getting this error, and you have no Schedule C or Schedule C-EZ, then you must delete any prior self-employment forms and Schedule C on your returns.

If you had self-employment income from a 1099-MISC in the prior year, it would have been carried over to this year's return as a 1099-NEC. For 2020, nonemployee compensation on the prior year Form 1099-MISC is now reported on Form 1099-NEC. You should also delete this from your return.

To delete, please follow the instructions below:

Open your return.
Search for 1099-NEC with the magnifying glass tool at the top of the page.
Click on the Jump to 1099-NEC link at the top of the search results.
Delete any 1099-NEC's entries with the trash can icon.
Then, search for Schedule C with the magnifying glass tool on the top of the page.
Select the Jump to Schedule C link in the search results.
Select No to the question Did you have any self-employment income or expenses?

Next, please make sure to delete any Schedule C or associated self-employment forms in your return.

Click on Tools.
Click on Delete a Form.
Scroll down to your forms and look for forms you need to remove (Schedule C and Schedule SE) and click Delete.

This should remove any self-employment forms on your return and Alabama will not be looking for an entry for AL Form 40, Line 2 of Page 2. Once the steps above are complete, you can refile your return.

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jasona22Author

Level 2

Thank you. I have resubmitted; already got Fed return, so hoping this process doesn't do anything with it. Now if State will just work. TurboTax is so I don't have to know all that. I tried to remove the previous years side job at the beginning of my taxes as I only did a few months of work for them and none for over a year. It said in the beginning it had to be there and kept putting it back.

I very much thank you and would buy you a beer. <raises glass> here is to you and hoping this goes through and I can just be done with these this year.