BTW, if you're using TurboTax to file your US taxes, you have another problem to solve. There's no obvious mechanism to zero out the self-employment tax entries generated by TT and added to your tax owed. There are various threads on this forum about how to deal with that, and the advice changed again for tax year 2020, because TT changed, as it does from year to year. This year, I used TurboTax Home and Business 2020 , downloaded to my laptop, not the online version. What I had to do, based on what I read in other threads, was first run TT to completion, so that it generated the SE tax and showed it on the final forms. Then I had to:
1. Navigate to "View->Forms".
2. Open the form called, "SE Adj Wks" (Self Employment Adjustments Worksheet).
3. Scroll to Part II "Nonfarm Profit or (Loss) Schedule SE, line 2".
4. Note the value entered on line 1a in Part II, "Total Schedules C".
5. Enter that same value on line 7 in Part II, "Less other SE exempt nonfarm profit or (loss)".
6. When I did that, the value on line 8 in Part II, "Total for Schedule SE, line 2" zeroed out, and my tax owed no longer included SE tax.
I didn't find any way to annotate that particular change, i.e., add a note that explains to the IRS why I entered that value on Part II, line 7. I attached the HMRC form CA3940 to the return, which may be sufficient explanation. If it's not, I'm sure they'll let me know. :(
At some point, I hope TT elects to address this need to the step-by-step walkthrough, so we don't have to mess with it after the fact. I've been waiting years for that to happen, though, so not holding my breath.
