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I got a "Check this entry" from the software. "Maximum Deferral of Self-Employment Tax Payments" ... What is this and why do I have to check it?

I answered all the questions and the software already said I didn't qualify for deferred payments. So why am I being asked to check this entry?
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3 Replies
MarilynG1
Expert Alumni

I got a "Check this entry" from the software. "Maximum Deferral of Self-Employment Tax Payments" ... What is this and why do I have to check it?

You could try entering $0 in this entry.

 

Per ExpertDawnC:

 

"The Coronavirus, Aid, Relief and Economic Security Act (CARES Act) gives self-employed taxpayers the option to delay paying a portion of their Social Security taxes when they meet certain requirements.

The option to defer only applies to Social Security taxes for self-employment income you earned from March 27, 2020 through December 31, 2020. This income is typically reported on Schedule C (profit or loss from business) or Schedule H (for household employees) of your tax return.

 

If you do not qualify for this credit and want to remove the form so you can e-file, use the instructions below to delete the form.   @bengoiano    @HMVS  @TWDesigns

 

 It's OK to delete forms that you know don't apply to your return, or are duplicated or blank.  Here are the general procedures for deleting unwanted forms, schedules, and worksheets in TurboTax:

 

TurboTax Online

  1. Open your return in TurboTax. (To do this, sign in to TurboTax, and select the Take me to my return button.)
  2. In the left sidebar, select Tax ToolsTools.
  3. In the pop-up window Tool Center, choose to Delete a form.
  4. Select Delete next to the form/schedule/worksheet and follow the onscreen instructions.

 

Windows Instructions 

Switch to Forms mode.

  1. In the left pane, select the form you want to remove. (if you don't see it, click Open Form at the top).
  2. After the form is generated in the right pane, click the Delete Form button at the bottom of the window.
  3. Follow any on-screen instructions to remove the form or forms.

 

Mac Instructions

Switch to Forms mode.

  1. In the left pane, select the form you want to remove (if you don't see it, click Open Form at the top).
  2. From the Forms menu, select Remove [form name].
  3. Follow any on-screen instructions to remove the form or forms."

 

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I got a "Check this entry" from the software. "Maximum Deferral of Self-Employment Tax Payments" ... What is this and why do I have to check it?

This response did not help at all because I only want do delete the part of the 1040 form pertaining to self-employment tax deferral, not the entire 1040 worksheet. There is no way to correct this error because the line above it is negative. Turbo tax will not accept a negative number (the difference in the previous line which I should enter is negative, so I don't qualify) but if I enter 0 ,Turbo tax says my entry is greater than the previous line. This is a BUG in your software, and it's wasted FAR too much of my time. I tried going back to the SE employment deferral and starting over, but the data is already entered and it will not let me start over. So I spent the last 16 hours working on taxes only to hit this dead end where I cannot submit my taxes. PLEASE fix this ASAP. 

JamesG1
Expert Alumni

I got a "Check this entry" from the software. "Maximum Deferral of Self-Employment Tax Payments" ... What is this and why do I have to check it?

Your self-employment income may be eligible for a portion of your self-employment tax to be deferred.  See this TurboTax Help.

 

In fact, you may find it helpful to delete the form for the 1040 and 1040 Worksheet.  Both forms will regenerate but you may have to add a couple items of data.  Follow these steps:

  • Down the left side of the screen, click on Tax Tools.
  • Then click on Tools.
  • Then in the center of the page, click on Delete a Form.
  • Choose the form to be delete and click Delete to the right of the form(s).

 

In TurboTax Online Self-Employed, I was able to enter a self-employment tax deferral and pass Review.  Then I was able to remove self-employment tax deferral and pass Review.

 

Follow these steps. 

  • Down the left side of the screen, click on Federal.
  • Across the top of the screen, click on Deductions  & credits.
  • Under Your tax breaks, scroll down to Self-employment tax deferral.
  • Click on Edit/Add to the right of Self-employment tax deferral.
  • At the screen Do you want more time to pay your self-employment tax?, click Yes.
  • At the screen Let's start by getting your eligible income, leave the dollar amount you previously entered.
  • Click on Continue.
  • At the screen Tell us how much you'd like to defer, change the dollar amount to $0.
  • Click Continue.
  • Click through Federal Review to make sure than the Review issue has been removed.
  • At the screen Some of your self-employment taxes may be eligible, click Skip.

 

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