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Level 3
posted Mar 12, 2023 9:34:45 PM

How to delete self employment the right way?

I've been doing self employ side gig for the past few yrs and this year I don't want to include in my filing and I wasn't getting over $200.  Do I just delete using the trash icon?  The other reason I want to delete it because it lowers my refund in half!  Is the child credit to blame because we got the child credit in advance in 2022?

0 3 990
3 Replies
Level 15
Mar 12, 2023 9:46:44 PM
Level 15
Mar 12, 2023 9:48:15 PM

Under $400 in self employment won't reduce your refund.  You don't owe self employment tax under $400.  And there was no child credit advance in 2022.  That was only for 2021.

 

Check these changes

Tax Benefits Changing for Tax Year 2022 - The TurboTax Blog

 

Why did my refund go down?

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-refund/refund-go-compared-last-year/L97JmhUbi_US_en_US

 

2022 refunds might be smaller.  The IRS says....

Refunds may be smaller in 2023. Taxpayers will not receive an additional stimulus payment with a 2023 tax refund because there were no Economic Impact Payments for 2022. In addition, taxpayers who don’t itemize and take the standard deduction, won’t be able to deduct their charitable contributions.

Get Ready now to file your 2022 federal income tax return | Internal Revenue Service

 

And a couple credits like the EIC and Child Tax Credit went back to the old rules and amounts so you are not getting as much.  2020 & 2021 had special rule changes and higher credits due to the pandemic.

Expert Alumni
Mar 17, 2023 1:45:23 PM

Yes, if you want to delete any reference to self-employment, then use the trash icon to delete the entry.  Although while keeping any reference to self-employment may lower your refund, if you earned income through a side gig, you do need to pay tax on that income.  If for 2022, your activity no longer qualifies as income from self-employment because you did not perform the work with regularity and continuity and in a business-like fashion, then you can report the income as "other income."  Below, you will find the steps to follow to report this income as other income if you are so inclined.

 

  1. To enter other income in TurboTax online, click on Wages & Income, scroll down the page to Less common income, click on the drop-down arrow and select Miscellaneous Income.  
  2. From the list select Other reportable income and respond to the questions on the screens that follow.   
  3. If you are using TurboTax CD/download, the process is similar.  After selecting the Wages & Income tab, scroll down the screen to Less Common Income, and select Miscellaneous Income.  Enter your information. 

Yes, your refund may be less this year because the advanced child tax credit no longer applies.  In 2021, most families received the full amount: $3,600 for each child under age 6 and $3,000 for each child ages 6 to 17. However, as noted in prior posts, this advanced child tax credit is not available for tax year 2022.  

 

@txkpt