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ShanonW
Level 1

Why does Schedule SE - have line 7 filled in as 137,700 and line 14 as 5,640? I didnt enter that information during the process. Ive filed, should I amend?

I always do my taxes the same, I've followed the same steps. Usually, I use SE short form, this 2020 form looks like a Long form?  It has entered information I did not, and it is in a different font style, Comparing previous years' returns, with this year everything else checks out.  This information also shows up on from when I google it.
13 Replies
jtax
Level 9

Why does Schedule SE - have line 7 filled in as 137,700 and line 14 as 5,640? I didnt enter that information during the process. Ive filed, should I amend?

@ShanonW you are fine. No need to amend or worry.

 

There are some cases when you need to use the long for Schedule SE and sometimes when you can use the short form. TT will figure that out for you so it doesn't really matter which for it uses.

 

As for the numbers on line 7 and 14, those are numbers  from the tax law. They are in an italic font style on the form from the IRS. https://www.irs.gov/pub/irs-pdf/f1040sse.pdf

 

If you read the descriptions to the left for the numbers you will see that line 7 is the max wage/SE income that is subject to the FICA portion of the SE tax. Line 14 is the the max income for which one can use an optional method to figure SE tax. 

 

 

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ShanonW
Level 1

Why does Schedule SE - have line 7 filled in as 137,700 and line 14 as 5,640? I didnt enter that information during the process. Ive filed, should I amend?

Thank you so much!!!  I was worried for sure.. That is confusing and I've never been prompted to use the long-form before, I'm not sure why it turned into that this year, as everything is pretty much the same. I appreciate your information so much..

 

Shanon

jtax
Level 9

Why does Schedule SE - have line 7 filled in as 137,700 and line 14 as 5,640? I didnt enter that information during the process. Ive filed, should I amend?

@ShanonW I did a little more research. It seems that the IRS revamped Schedule SE for 2020 taxes. There is no longer a Short schedule SE and no longer separate schedule SE for some uncommon situations. There is just one schedule SE.

 

this makes a lot of sense since no one is filling out the forms manually. TT will get the info it needs from you and put it in the right places on the right form.  So why not get rid of two or three forms and combine into one. Your job is to be very careful reading the questions TT asks. I see people get in trouble because they breeze through the questions and therefore TT doesn't have all the info it needs to figure out what goes where.

 

But in your case there is no problem this year because of the Schedule SE.

 

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riaf
New Member

Why does Schedule SE - have line 7 filled in as 137,700 and line 14 as 5,640? I didnt enter that information during the process. Ive filed, should I amend?

Thanks for your information.  I had the same question.  It is a great relief.  It was very hard to get an answer from the TT  help or the 800 number for support.  I need to be very specific about the question I ask in the search window.   

 

I worried all night, last night and was about to start calling again today.  You saved me a lot of grief.   Thanks again. 

jtax
Level 9

Why does Schedule SE - have line 7 filled in as 137,700 and line 14 as 5,640? I didnt enter that information during the process. Ive filed, should I amend?

@riaf You're welcome! This is the kind of question that this (largely) volunteer forum is good at figuring out. 

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smcbeath1
New Member

Why does Schedule SE - have line 7 filled in as 137,700 and line 14 as 5,640? I didnt enter that information during the process. Ive filed, should I amend?

On line 9 I assume I should enter -0- as I did only earn 840.00 in self employment and my SS was 19,000.00

smcbeath1
New Member

Why does Schedule SE - have line 7 filled in as 137,700 and line 14 as 5,640? I didnt enter that information during the process. Ive filed, should I amend?

So for line 10 do I multiply the 770 from line 6? 
it says to multiply the smaller of lines 9(which is -0-) and line 6

jtax
Level 9

Why does Schedule SE - have line 7 filled in as 137,700 and line 14 as 5,640? I didnt enter that information during the process. Ive filed, should I amend?

@smcbeath1 You don't enter anything. If you answer the interview questions, TurobTax will fill in the Schedule SE as needed.

 

Even so I'll address your questions.

 

On line 9 I assume I should enter -0- as I did only earn 840.00 in self employment and my SS was 19,000.00

 

No. The 2020 Sched SE line 9 says "Subtract line 8d from line 7" ... line 7 is the max income subject to FICA ($137.7k). So if you have no other earned income than $840 in SE income, line 7 will be $137.7k.

 

So for line 10 do I multiply the 770 from line 6? 
it says to multiply the smaller of lines 9(which is -0-) and line 6

 

Line 9 will be $137.7.k, but it is the larger so that doesn't matter.

 

So line 10 will be 12.4% times line 6. If I enter $840 of net SE income, I get $776 on line 6 (from 4a).

 

 

 

 

 

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OliveMyLove2YOU
New Member

Why does Schedule SE - have line 7 filled in as 137,700 and line 14 as 5,640? I didnt enter that information during the process. Ive filed, should I amend?

Did yours also have the 137,000 on line 9 but in the same font as the rest of your return? Mine has the lighter font on line 7 AND THEN on line 9 it has that giant number in the "normal" submitted numbers font... I am so worried about this!!!

 

ShanonW
Level 1

Why does Schedule SE - have line 7 filled in as 137,700 and line 14 as 5,640? I didnt enter that information during the process. Ive filed, should I amend?

Yes!  Previous answers told me not to worry about it. I don't fully understand why it does this, but apparently, it is correct. It is concerning since it doesn't show during the process, and then all a sudden after you see that number. 
best of luck

macuser_22
Level 15

Why does Schedule SE - have line 7 filled in as 137,700 and line 14 as 5,640? I didnt enter that information during the process. Ive filed, should I amend?


@ShanonW wrote:

Yes!  Previous answers told me not to worry about it. I don't fully understand why it does this, but apparently, it is correct. It is concerning since it doesn't show during the process, and then all a sudden after you see that number. 
best of luck


Because line 7 is prefilled by the IRS on the form  - see the actual IRS form:

https://www.irs.gov/pub/irs-pdf/f1040sse.pdf

 

Line 7 is the maximum income subject the the SE tax.

Maximum income subject to social security tax.For 2020, the maximum amount of self-employment income subject to social security tax is $137,700.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
OliveMyLove2YOU
New Member

Why does Schedule SE - have line 7 filled in as 137,700 and line 14 as 5,640? I didnt enter that information during the process. Ive filed, should I amend?

I understand that on lines 7 & 14 there should be the 137,700 and 5,640 in a different lighter font, but on line 9 should 137,700 be there as well??? And  NOT in the lighter font? 

Sorry, I know my question is a little repetitive... But I just want one more confirmation LoL because its been ALOT longer than 21days since I've E-filed & I'm starting to get REAL worried I did something wrong.!. Thank You So Much!!! 

 

OliveMyLove2YOU
New Member

Why does Schedule SE - have line 7 filled in as 137,700 and line 14 as 5,640? I didnt enter that information during the process. Ive filed, should I amend?

Ooo!!! Nevermind!!! LoL 

I reRead everything on this form again & i seen, YES LINE 9 SHOULD ALSO HAVE THE137,700. 

Sorry... THANK YOU EVERYONE! 

This was such a relief.!. 

But should I call them since its been alot longer than 21 days since I've Efiled.?. Or is that normal this year because of Covid & everything.?. 

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