How do I complete Sch SE-T Pt 3? Line 4c shows loss from my Sch C. Line 18 asks how much of line 3 is from 3/27 - 12/31/20. I get an error msg deferral is too large

[BevDun]

No matter what amount I enter, I get the "Max deferral line 18 is too large" error.  The program keeps flagging this an issue needing fixed.

[CatinaT1 · Accepted solution]

To get past this screen so you can file your taxes, you need to update Schedule SE-T. 

  

The process: delete Sch SE-T, take a quick run through of the self-employment to recalculate Sch SE-T, and then turn off the Max Deferral. 

  

To do this in TurboTax, follow these steps: 

  

First, delete Sch SE-T that applies by following these steps: 

1. From the left menu, select Tax Tools. 

2. Select Tools. 

3. Scroll to Delete a Form. 

4. Scroll to Sch SE-T, select Delete, confirm the deletion. 

Next, to replace Sch SE-T, return to the self-employment income & expenses interview in the Income & Expenses section and select Edit/Add. 

1. Select Edit for your business. 

2. Scroll down to Done so that the Sch SE is recalculated.  

3. Finish any other questions in the self-employment interview and click Continue.  

Lastly, revisit the section for the Self-employment tax deferral entry: 

1. Return to the Deductions & Credits section. 

2. Scroll to Tax relief related to COVID-19 and Show More. 

3. Select Self-employment tax deferral and select Revisit. 

4. Answer Yes at the next screen to get back to Let's start by getting your eligible income. 

   1. If you do not want to defer any self-employment income, "Enter your eligible self-employment income" should be blank. 

      1. Select Continue. 

   2. At Tell us how much you'd like to defer, "Enter amount" should be blank. 

      1. Select Continue. 

5. Scroll down and select Wrap up Tax Breaks and Continue. 

6. Run through the Federal Review again. 

[BevDun]

Thank you so much for your help! It worked perfectly.

[SPC49418]

I have two business. One is negative (the problem) and the other is positive and so eligible. I cannot get the process to work as you describe. I am using the CD version of Home and Business. I have tried to input -1, 0 and 1 for the box. (not allowed, too large, too large).

[wattsray]

This solution does not work with TurboTax Deluxe.  I have gone through the instructions carefully, multiple times, and it always comes back to the same error, that a zero in line 18 is "too large."  This is a calculation of the amount of SE tax on a profit that can be deferred, and this Sched K-1 (Form 1065) shows a loss, not a profit.  How can zero be too large?

HELP, I want to file my taxes and TurboTax will not let me file because of this programming blunder.

[JamesG1]

Are you saying that the only self-employment income on the tax return is negative?  Please clarify.

At the screen Let's start by getting your eligible income, are you able to delete the value or enter $0?

In TurboTax Online Self-Employed, 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, delete the dollar amount or change the value to $0.
• Click on Continue.
• At the screen Tell us how much you'd like to defer, delete the dollar amount or change the value 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.

The self-employment tax deferral is an optional benefit.  It is also a deferral rather than forgiveness, so those amounts will eventually need to be repaid. Half of the deferred amount is due on December 31, 2021, and the other half is due on December 31, 2022.