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Get your taxes done using TurboTax
Errors for form 7202 can be solved by removing the form; if you are taking the credit and need the form, you have to file by mail. The Sch SE-T deferral error is different and may need extra steps to fix if you have net SE income on your tax return. Line 18 of Sched SE is the total amount of eligible income (income earned from 03/27/-12/31). Entering 0 on Line 18 alone is not going to remove the error if you have previously entered an amount to be deferred. If the error is taking you to a worksheet that shows a deferral amount of 0, delete that 0 and leave the field blank; you should be able to continue filing without error.
To go through the interview and edit the amounts you can defer or want to defer:
- Click on Federal from the left menu
- Click on Deductions and Credits from the top menu
- Scroll down and click on See More Tax Breaks if you don't have the full list
- Look for and Review the entries under Tax Relief related to Covid-19.
Click Revisit / Enter / Edit next to Self-Employment (SE) tax deferral. To update the form, answer YES to the first question (even though you don't want to defer these taxes). Enter your eligible earnings and on the next screen, enter 0. TurboTax will calculate the amount you are eligible to defer but you do not have to defer the tax, you can enter 0 in that field, and then you should be able to e-file. If you get an error for the 0 during the review, delete that 0 and leave the field blank.
If deleting the amount on Line 18 of Sched SE or deleting/clearing out the 0 from the worksheet in the review section does not work, you may need to add some temporary income to be able to remove this error. The extra steps below are for people who previously elected to defer taxes that they do not owe and are unable to correct the error in the interview.
You can't defer the tax if you are showing a refund due to you and/or don't owe any SE tax. So, if you completed the form while you were not showing a refund amount, but after entering additional information, you now show a refund - you will get a message that says ''Looks like you are not eligible for this deferral'' when you go through the interview.
In this case, to be able to remove the adjustment in the interview, you can add another line item of Other Self-Employment income of 100K (see image below) before you go through the interview. Then, after your return is in a ''no refund'' state, go through the interview. Be sure to remove the extra income you added before you file! If you receive another error for the 0 on the worksheet, delete the 0, leave the field blank, and continue filing your return.
I (1)added the temporary income to Schedule C - Other income, (2)went through the deferral questions again, and then (3) deleted the income. No error.
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