It's not really a question of TurboTax managing the situation. Schedule SE takes into consideration the Social Security wages (and Social Security tips, if applicable) in boxes 3 and 7 of the W-2. It applies the maximum Social Security earnings to the sum of the amounts from the W-2 and Schedule C. TurboTax just follows the IRS instructions for calculating the self-employment tax on Schedule SE.
Take note of what VolvoGirl and Opus 17 said. You have to make sure that the W-2 and Schedule C are both assigned to the same person. TurboTax does not look at the name on the W-2. When you entered your W-2s you had to select which person each W-2 was for. Go back to the W-2 summary and look at the name associated with each W-2. Make sure they are correct. Also make sure that boxes 3 and 7 of the W-2 are entered correctly. And make sure that the correct person's name is at the top of Schedule C.
@ylevine wrote:
Turbo Tax did not recognize that for this person the max of SS had been met.
What exactly makes you think that TurboTax "did not recognize" that the person with the Schedule C income paid the maximum Social Security tax? What is the exact amount on Schedule SE line 8d? What specifically do you think is wrong on Schedule SE? What is the exact amount in box 3 of the person's W-2.
TurboTax does not support Form 843, but you should not need it.
