ProConnect Tax does not default to that because by the very nature of Sch C, there's supposed to be material participation.

You have accidentally check the box for
Did not "materially participate".  Go back and uncheck that box to fix this.

That box wasn't checked

I'm running into the same issue, were you able to find a work around?

Unfortunately, this is true for me also.I did not check this box on the Sch C or on Input tab "Did not "materially participate", however, it has defaulted to "no". We are not able to uncheck the box on the "Check Return" tab when looking at the Forms, nor on the "Input" tab. Please advise.

I have experienced this before and my issue turned out to be that I misread the labels and entered a value under Qualified Joint Venture Rental Activities, at the bottom.  I had entered 1 for active.  But it caused the material participation to show as No.  
Could this be the issue?

Hi, Greg

Thanks for your help, I appreciate it. I realized the “active participation” question on the Input tab was causing the issue. I had answered 1=yes. After deleting this entry, I was able to get a ‘Yes’ on the Check Return tab when looking at the Sch C under Forms. 

Thanks everyone, hope our answers help others. 

Best Regards,

Tessi Banks