KathrynG3
Expert Alumni

Get your taxes done using TurboTax

To review how to clear the error, there are four ways to get this resolved. The initial answer can be released and the program will update. It is best to be in a Chrome browser, but I have seen people using Safari be able to update by deleting and re-adding the Sch SE, though.

 

When leaving the question blank or entering 0 does not work, then the next step is to force the update by deleting Schedule SE, and then running through the Schedule C again to click Done. This will force a new Schedule SE to be added. 

 

To do this in TurboTax:

  1. Delete the Sch SE that applies--(Sch SE-T is for Taxpayer, Sch SE-S for Spouse)--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 and/or Sch SE-S and select Delete.
  2. 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.
  3. Review the return again.

If this box cannot be left blank after updates, will not accept 0 for an answer, and after deleting Sch SE, you are still experiencing unexpected results, then there is one more process to try: temporarily trigger a balance due by adding income long enough to decline the SE tax deferral option, then remove the extra income.

 

To do this in TurboTax, follow these steps:

Enter a temporary amount as income in the self-employment section that will result in you not having a refund.

  1. From the left menu, select Federal.
  2. From the Income & Expenses, scroll to Self-employment income & expenses and Edit/Add.
  3. At Your 2020 work summary, select Edit.
  4. Under INCOME, select Add income for this work.
  5. Add Other self-employed income, includes 1099-K, cash, and checks and Continue.
  6. At Type of income, enter Temp income to remove deferral and enter a large amount, such as $100,000 and Continue.

Decline to defer any self-employment tax.

  1. From the left menu, click on Federal.
  2. Click the second tab from the left, Deductions & Credits.
  3. Scroll down to Tax Relief related to Covid-19 and Revisit.
  4. Select Self-employment tax deferral and select Revisit.
  5. Answer Yes at the next screen to get back to Let's start by getting your eligible income
    1. Enter 280/366ths of your income to reflect the income from March 27-December 31, 2021. 
      • This amount should be calculated and entered without the false added income, and will post to Line 18 of Sch SE
    1. Select Continue.
    1. At Tell us how much you'd like to defer
      • Enter 0.

Remove the temporary income.

  1. From the left menu, select Federal.
  2. From the Income & Expenses, scroll to Self-employment income & expenses and Edit/Add.
  3. At Your 2020 work summary, select Edit.
  4. Under INCOME, select the Trash can icon next to Temp income to remove deferral and Continue.

@jomacgugan