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ligregsa
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Somehow my Return is showing I own a business, how do I edit and show I dont, before I finish filing?

 
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2 Replies

Somehow my Return is showing I own a business, how do I edit and show I dont, before I finish filing?

You posted your question from the online Free Edition, so we cannot tell what you actually used.  Did you end up in Self-Employed?  Do you have income from working as an independent contractor, or did you receive income reported on a 1099Misc?  If so the IRS considers you to be self-employed even if you do not think you "own a business."  

 You can clear and start over in a lower version of the software if you have not yet filed, registered or paid.  Clearing means you literally start over -- nothing you have entered will be saved.

https://ttlc.intuit.com/questions/2586254-how-do-i-clear-and-start-over

 

If you explain further we may be able to guide you to the appropriate software if you used the wrong version.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Hal_Al
Level 15

Somehow my Return is showing I own a business, how do I edit and show I dont, before I finish filing?

Although it may be news to you that you “have a business” (and most of the other people who get their first 1099-MISC); The IRS considers anything in box 7 of 1099-MISC to be self employment income. Enter the 1099-Misc income, at Other Common income / income from a 1099-MISC . TurboTax (TT) will complete Schedule C or C-EZ for you and allow you to deduct any expenses associated with this income. You'll also have to pay self employment tax (social security & Medicare) on any profits greater than $400. These types of payments are frequently done this way. Your "employer" is not the only one.

The IRS also considers undocumented cash income (no W-2 or 1099-MISC), for work performed, to be self employment income.

 

Since the IRS considers anything in box 7 of 1099-MISC to be self employment income. TurboTax (TT) aggressively steers you in that direction, even if the amount is in box 3. If you try reporting box 7 income as anything else, you chances of hearing from the IRS are very high.

 

That said, the key to getting TT to treat it as other income is to follow these steps:

 

Enter the 1099-Misc

On the next screen Describe what the payment was for

On the next screen select "none of these apply"

On the next screen select "No it didn't involve work like my main job"

On the next screen select "I got it in 2018" ONLY

On the next screen select No, it didn't involve intent to earn money

TT will put the amount on line 21 of form 1040 (Schedule 1) as other income

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