If your Schedule C business transferred over from last year's return, but the business no longer exists and you need to remove it, here's what NOT to do:
- Do not delete Schedule C.
- Do not remove the business from the Business Summary screen.
Doing either of these can result in calculation problems. Instead, follow the correct procedure below to properly remove the business from your return.
The correct way to remove your business from TurboTax
- Open your return in TurboTax.
- (Home & Business) Click the Business tab and continue to the Your Business Income screen.
(All other versions) Click the Federal Taxes tab, and then click Wages & Income below it. Proceed to the Your Income Summary screen and scroll down to the Business Income and Expenses section.
- Click Update to the right of Profit or Loss From Business.
- Answer Yes to the question Any Business Income or Expenses?
- That's right – answering "No", while technically correct, will guide you down the wrong path.
- When you get to the Business Summary screen, click Edit next to the defunct business.
- On the next screen, click Update next to Business Profile.
- You should now be at the Let's Review Your Business Profile screen. Click the Edit button next to the sentence Disposed of Business in Current Year.
- Select the second checkbox I sold or otherwise disposed of this business and then answer the question about how you disposed of the business.
- Continue until you reach the Your Business screen and then click the Done With Business button.
Your former business is now properly removed from your return.