I am stuck on schedule 3 line 12e, what do I do if the result is negative?

[DianeW777 · Accepted solution]

It seems you are using the TurboTax Desktop Basic version. You should delete Form 1099-NEC

The entry of Form 1099-NEC is a convenience and not a requirement.  You will not see a 'Schedule C' exactly, rather a selection of income and expense categories that you can complete for your Schedule C. 

Follow the steps here to enter your income without using the Form 1099-NEC and then delete that form from your file.

• Open your TurboTax return > Search (upper right) > Type schedule c > Press enter > Click the Jump to link.
• Select to Edit beside your business > Select Income > Select Other self-employed income, includes 1099-K and cash...
• See image below

TurboTax CD/Download - Delete Form

1. Go into Forms Mode by clicking on the Forms icon in the top right of the blue bar. 
2. In the Forms in My Return list on the left, click on the form you wish to open and delete.
3. Click on the Delete Form box at the bottom of the screen.
4. To return to the interview, click on the Step-By-Step icon in the top right of the blue bar

[krichter99]

I used the online version. But this explanation made sense and if I don't explicitly say that I have a 10900-NEC, I was able to enter the income and get my taxes filed.

Thank you!

[ReneeM7122]

Correct, if you are filing a Schedule C then you need the self-employed version.  However due to COVID there is a deferral to SE and some customers are seeing an issue while trying to prepare their returns.  This could be because of the way a question combination was answered or something on the return.  The software tries to add the form if the election to defer self-employment taxes was made on  federal input screens. To remove the error, you should  cancel your election to defer taxes.  Here's how to do it:

Open your return.

1. Click Federal on the left hand side. 
2. Click Deductions and Credits on the top of the page.
3. On the page Tax Breaks, scroll down until you see Tax relief related to Covid-19.
4. Click Revisit next to Self-employment tax deferral. 
5. Answer no to the question Do you want more time to pay self-employment taxes? 

@AmeliesUncle

[milo2345]

I have done this several times and the values are now zeros but it show as 5 errors.   

[AmyC]

Turn the zero into blank. The program is trying to calculate an amount greater than zero for the credit to defer SE tax.

@milo2345

[Vladimir Cerna]

but I don't have 1099-NEC, I only have 1099-G for unemployment.  Not sure if you response applies.  I am getting the same error.   Line 11 (Enter the amount to report on Schedule 3 Line 12e) -  I currently have "0" zero, but error says line 11 value is too large.

[Irene2805]

Delete the zero and leave the field blank if there was no state income tax withheld.

Make sure you are entering your unemployment benefits in the Unemployment section of Wages & Income, and not in he Other Common Income (including 1099-G) section.

@Vladimir Cerna