Stop Schedule C in Desktop - not self employed!

[Peaceful Shelter]

More than 12 years ago I was self employed as a consultant, but was hired in 2012 as a full time employee by a company and receive a W2.

Yet every year TurboTax automatically includes a Schedule C filing.  Every year I have "0" - but because of this filing I also get hit with self employment tax and my county thinks I am working from home or running a side business.

I see NOWHERE in Desktop to tell it that the self employment business was ended or disposed of.  There were no assets to dispose of.  All instructions I see in comments say go to "Tools" or that there will be this question of disposal or cessation of a business in the initial interview - which I have never encountered.  I am on TT H&B DESKTOP and there is no "Tools" button or place I see to change this info.

I'm having the same issue with Schedule F Farming.  I live on a farm.  I do not farm for a business.  The "interview" does ask if The "Business" of P&L from the Farm Schedule F still applies.  When I say NO it says "we can't remove the P&L because of the info from 2022, but don't worry - I can review later.

When you see it listed under Income - it says "needs review" even though it is zero zero zero and I need it to go away. (LOL)

Again, I see no place to say there is no longer a working Farm, no need to file Schedule F every year etc.

I am aware that if I just delete these Forms this will cause an audit and problem at the IRS because I have to explain the ceasing of this former Self Employment and Farming somewhere!

Please can someone explain exactly where in DESKTOP to do this?

Thanks!

[VolvoGirl]

You don't have to tell the IRS you stopped.  You can delete schedule C.   Switch to Forms mode, click Forms in the upper right (left for Mac).  Open Schedule C on the left column and Delete it.  How can you be paying self employment tax if you have 0 Net Profit?  

[Peaceful Shelter]

Thanks for your response, but every thing I have seen in detail of the comments as well as tax advisors say the IRS will expect a Schedule C if you do not report that you sold or disposed of a business.  Just deleting the form can likely cause an audit 2-3 years down the road.

One sample link: https://ttlc.intuit.com/community/business-taxes/discussion/i-no-longer-have-a-business-how-do-i-rem...

Details here under Unincorporated, no employees:

https://turbotax.intuit.com/tax-tips/small-business-taxes/closing-a-business/L3pbEl8of

There should be somewhere in the initial interview where it asks if there is still a business - yet it does not ask me and just takes me right into Schedule C Business questions etc.

The county I live in charges you a self employment tax just for having a Schedule C and they also then want me to file for a business license.  Regardless, I would like to remove this so it stops presuming I am running a self employed business on the side.  Apparently in the Online version there is a place to say this business has stopped etc. But I see no where to do this in Desktop version and don't want to just delete a Form and then get audited 3 years from now. 🙂

[ThomasM125]

On the initial screen you see in the business section, you will see an option for General Business Information, which is under Business Profile, click on the Update button.

On the next screen, you will see an option to indicate that you Disposed of Business in Current Year, on the screen that is titled Let's confirm your business info, edit the response so it says "yes"

[Peaceful Shelter]

Thanks for your reply and trying to help but I don't see anything like that in Desktop TT Home & Business.

If you click on the Business Tab at the top, the first screen you see is "Let's find some Business Deductions"....

The tab before that is Personal and only asks to confirm my name, address, SSN etc.

There is no General Business Information or Business Profile.  Where is this located?

[ThomasM125 · Accepted solution]

You are in the right place:

Press Continue and on the next screen pick I'll choose what I work on. On the next screen you will see an option for updating your Profit or Loss from Business. Choose that and then edit your business

Once you edit the business you will see the screen I referred to in the previous post that says Business Profile.

[Peaceful Shelter]

God BLESS YOU!!!  Thank you so much - I would have never figured out where this was!

I was able to remove the Schedule C business, as well as an old rental that hasn't been rented for 6 years (LOL!)  Now I was able to just do normal taxes and get them filed today.

Very grateful!  Have a wonderful rest of your year.