After I lost my full-time job, I freelanced for a few companies for less than 6 months out of the year. Even though I do not own my own business, I understand that TurboTax considers me to be a business owner for filing a schedule C, as I was freelancing and therefore was my own boss; however, I'm confused regarding the "active participant," "passive participant," and "materially participating" terminology. Since I was writing for established businesses as a freelancer, do these phrases relate to those businesses, or "my business"? In other words, I freelanced for such a short chunk of the year that I wouldn't think I actively participated in these businesses, but would I have actively participated in "my own business," as I'm the "boss"?
Yes, you actively participated in your own business. You are putting forth the labor which enables the production of income.
Thanks so much for your quick response! So I would be an active participant in my business, even though I have no real established business and only did this freelancing work for a total number of a few weeks out of the year?