We have had the same business activity code (451130 for our fabric store) for years. This year, it did not allow me to enter that value. I enter it and it immediately changes it to 459130 which isn't even a valid code according to the IRS and TurboTax documentation. If I do a quickzoom to fill in the field it thinks 459130 is the correct code for "Sewing, needlework, piece goods retailer".
Should we file our taxes with that new code?
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Yes. You should use 459130 which is the correct code. 451130 does not exist.
The NAICS code is the principal business code for your business.
The principal business code is a six digit number that represents the field of work you are in. This code is entered on your Schedule C. The complete list of codes can be found on pages 118-20 of this IRS publication.
This code is used for statistical purposes only and does not affect your taxes. If you do not find an approximate code, you can enter 999999.
Well, it was a valid code last year. So you must be telling me the NAICS codes changed for 2022?
Code 451130 Sewing, Needlework, and Piece Goods Stores does exist but it does not appear on the IRS publication, so using code 459130 Sewing, needlework, & piece goods retailers is close enough.
Again, this code is used for statistical purposes only and does not affect your taxes.
I'm having a similar issue, I'm using 2022 Business TurboTax. I used 452900 in the past five years and it wont let me transmit the return. even when I change the value to 454100 it wont let me do it.
What value should I use?
The previous NAICS code 454100 was Electronic Shopping and Mail-Order Houses.
According to the 2022 Instructions for Schedule C, pages C-18-C-20: Nonstore retailers sell all types of merchandise using such methods as Internet, mail-order catalogs, interactive television, or direct sales.
If you still aren't able to find your code, use 999000 Unclassified establishments (unable to classify).
I have used Code 541611 for over 10 yrs. Now TT will not let me file electronically saying it isn't a valid code. When I look it up it shows it is still valid. What's going on?
Business Codes were revised and updated by the IRS. You will need to find a new category from the updated list. The business code section starts on page 18 of the link below.
Thank you.
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