Part III Maximum Deferral of Self-Employment Tax Payments What do I put ther $ amount? I do not understand why they keep telling me I am amending my taxes?

[dahlia1954]

Part III Maximum Deferral of Self-Employment Tax Payments What do I put there $ amount?

[JohnW152]

You’ll have to make your own calculation for Line 18 of Schedule SE, Part III Maximum Deferral of Self-Employment Tax Payments, but the IRS gives you a lot of leeway in figuring the amount.  I include an example below.

On Line 18, you're asked to make a calculation of the portion of the net profit or loss that you reported on Line 3 of Schedule SE that was made between March 27, 2020 and December 31, 2020.

The instructions for Line 18 in the IRS's 2020 Instructions for Schedule SE are vague, but they allow you to use any reasonable method to determine this figure:

Use any reasonable method to divide the net profit or (loss) you reported on line 3 between (a) January 1, 2020, through March 26, 2020, and (b) March 27, 2020, through December 31, 2020. A reasonable method will accurately reflect the time when income was earned or accrued and deductible expenses were paid or incurred, depending on your method of accounting. In most cases, a proportional division of the amount reported on line 3 based upon the number of days in each period will be considered reasonable.

EXAMPLE:  Say your Schedule SE Line 3 amount was $12,000.  March 27 to December 31 is 280 days.  280 days divided by 366 days (2020 was a leap year) is 0.765.  $12,000 multiplied by 0.765 equals $9,180. 

[DOE3]

What if there is "0" in line 3.  I've entered "0" on line 18 and when I run a review it still takes me back to this area as having an error.  Suggestions?

[JamesG1]

Your self-employment income may be eligible for a portion of your self-employment tax to be deferred.  See this TurboTax Help.

In TurboTax Online Self-Employed, I was able to enter a self-employment tax deferral and pass Review.  Then I was able to remove self-employment tax deferral and pass Review.

Follow these steps. 

• Down the left side of the screen, click on Federal.
• Across the top of the screen, click on Deductions  & credits.
• Under Your tax breaks, scroll down to Self-employment tax deferral.
• Click on Edit/Add to the right of Self-employment tax deferral.
• At the screen Do you want more time to pay your self-employment tax?, click Yes.
• At the screen Let's start by getting your eligible income, leave the dollar amount you previously entered.
• Click on Continue.
• At the screen Tell us how much you'd like to defer, change the dollar amount to $0.
• Click Continue.
• Click through Federal Review to make sure than the Review issue has been removed.
• At the screen Some of your self-employment taxes may be eligible, click Skip.