topic I am stuck on schedule 3 line 12e, what do I do if the result is negative? in Business & farm

I am stuck on schedule 3 line 12e, what do I do if the result is negative?

krichter99 — Wed, 24 Feb 2021 12:03:56 GMT

Under the worksheet for "Deferral for certain schedule H or SE filers" my result in line 10 is negative. But it will not let me answer "0" for Schedule 3 line 12e. This seems to be a bug.

Re: I am stuck on schedule 3 line 12e, what do I do if the result is negative?

CatinaT1 — Wed, 24 Feb 2021 13:29:46 GMT

To get past this screen so you can file your taxes, you need to update Schedule SE-T.

The process: delete Sch SE-T, take a quick run through of the self-employment to recalculate Sch SE-T, and then turn off the Max Deferral.

To do this in TurboTax, follow these steps:

First, delete Sch SE-T that applies by following these steps:

From the left menu, select Tax Tools.
Select Tools.
Scroll to Delete a Form.
Scroll to Sch SE-T, select Delete, confirm the deletion.

Next, to replace Sch SE-T, return to the self-employment income & expenses interview in the Income & Expenses section and select Edit/Add.

Select Edit for your business.
Scroll down to Done so that the Sch SE is recalculated.
Finish any other questions in the self-employment interview and click Continue.

Lastly, revisit the section for the Self-employment tax deferral entry:

Return to the Deductions & Credits section.
Scroll to Tax relief related to COVID-19 and Show More.
Select Self-employment tax deferral and select Revisit.
Answer Yes at the next screen to get back to Let's start by getting your eligible income.
1. If you do not want to defer any self-employment income, "Enter your eligible self-employment income" should be blank.
  1. Select Continue.
2. At Tell us how much you'd like to defer, "Enter amount" should be blank.
  1. Select Continue.
Scroll down and select Wrap up Tax Breaks and Continue.
Run through the Federal Review again.

Re: I am stuck on schedule 3 line 12e, what do I do if the result is negative?

AmeliesUncle — Wed, 24 Feb 2021 16:46:02 GMT

Don't enter zero, leave it BLANK.

Re: I am stuck on schedule 3 line 12e, what do I do if the result is negative?

krichter99 — Wed, 24 Feb 2021 20:45:28 GMT

Thank you I believe that this works. I have one more problem, I don't know if it's related.

Now, the cursor goes to Form 1099-NEC 2020, Nonemployee Compensation Worksheet, the box next to Schedule C. It says to double click to go to Schedule C, but it does not work. What should I do?

Thanks very much,

Re: I am stuck on schedule 3 line 12e, what do I do if the result is negative?

AmeliesUncle — Wed, 24 Feb 2021 20:47:59 GMT

I saw somebody else say that too ... I would just delete the 1099-NEC and just enter the income directly on Schedule C. There is no need to enter the 1099-NEC at all, as long as the income is reported on Schedule C.

Re: I am stuck on schedule 3 line 12e, what do I do if the result is negative?

krichter99 — Wed, 24 Feb 2021 21:01:42 GMT

TurboTax doesn't seem to walk me through Schedule C, and I did receive a 1099-NEC. Please, help me get through this bug!

Re: I am stuck on schedule 3 line 12e, what do I do if the result is negative?

LinaJ2020 — Wed, 24 Feb 2021 21:51:07 GMT

You will need to manually go thru Schedule C section by following steps below.

When you receive a 1099-NEC with nonemployee compensation, you will need to enter the information in both Form 1099-NEC and Schedule C sections. You would start from the 1099-NEC section under "1099-MISC and Other Common Income". You would then follow prompts to tell the program you are filing a Schedule C. As it creates a Schedule C for you, you will need to go to the Schedule C portion separately to confirm your income amount, add related expenses and complete required information.

In TurboTax online, here are the steps:

Sign into your account, select Pick up where you left off
From the upper right menu, select Search and type in 1099nec and Enter
Select the Jump to 1099nec
Follow prompts to complete the section

Then

From the upper right menu, select Search and type in schedule c and Enter
Select the Jump to schedule c
Next screen, "Your 2020 work summary" under your self employed business, select Review
Continue to enter related expenses and other required information

Generally, most taxpayers who receive a Form1099-NEC are considered as self employed by the IRS and required to pay self-employment tax. You will need to file a Schedule C reporting both income and any related expenses. You will also need to file a Schedule SE to pay your self-employment tax. If you received the form for a non-self employment income, you will enter it as Other Income on your Form 1040. Follow the prompts in the TurboTax program and it will take you there. To learn more, click here: 1099-NEC

@krichter99

Re: I am stuck on schedule 3 line 12e, what do I do if the result is negative?

krichter99 — Thu, 25 Feb 2021 01:16:53 GMT

I am still having the same problem. I cannot get to Schedule C, it just sends me back to review my self-employment income and then at the end it gives me the same problem again.

Are you saying that I should say that I have a 1099-MISC, even though I really have a 1099-NEC? I'm very confused at this point.

Re: I am stuck on schedule 3 line 12e, what do I do if the result is negative?

WendyN2 — Thu, 25 Feb 2021 03:49:07 GMT

HOW TO POPULATE A SCHEDULE "C" WITH A 1099-NEC:

Try these steps:

- Select the tab at the top for Federal Taxes, then Wages and Income

- Scroll down the page a bit until you see "1099-MISC and Other Common Income Section"

- Under this section you will see "Income From 1099-NEC" - Click Start button then select "Yes"

- Near the bottom to the right click on "Add a 1099-NEC"

- Fill out the information per the information provided to you on the 1099-NEC - be sure not to omit anything

- Check the box next to "My form has other info in boxes 4-17" - this then opens up the rest of the page below that....

- Again, fill out the information accordingly as it is on the 1099-NEC you received (be sure not to miss anything);

FYI - click on this - "What if my form has other boxes filled in?" and the below statement will appear

- "If you have info in box 7, you might have to report income from this sale in the "Business Income and Expenses" section"

- Scroll to the bottom and click "Continue" - then follow prompts to fill in the appropriate information accordingly

- Ignore the stmt. "What if I got my 1099-NEC for something other than a job" - since you stated it was for work performed by you

- Click "Continue"

- Check off the box to the left of "None of these apply to me" and click "Continue"

- Check the box to the left of "Yes, I have expenses to deduct"

You are now at the Self-Employed 1099-NEC Income Page; Here you pick a name for your "business" or enter the one you've already chosen. It does not have to match the one on the 1099-NEC you received, but it should. As long as the SS# or FID# (whichever you used for yourself, NOT the payor's info.) match what the IRS has already received by the payor, that is fine. Click "Continue"

- Now, you want to click on "Edit" to the right of the 1099-NEC listed that you just entered. It is going to begin to walk you back through

the process, but now with more questions...Select "YES I have expenses to deduct" - click "Continue"

- Check the circle to the left of your business type/name listed there, then click "Continue".

This has now generated a full Schedule C for you. YEAH!

Now, at the very bottom of your Income Summary Page, click on "Done with Income"

NOW, go back to "Wages and Income" section, scroll down until you see "Business Items", and you will see "Business Income and Expenses (Sch C)" - you will see it says "Needs Review", so click on Update, then Edit (to the right of the 1099-NEC, and that is how you populate the Schedule C.

The system now will be prompting you to add a product in order to add the Schedule C to your return. All tax preparation software systems charge extra for this form. Unless you started out with the version that includes it, then you've already made that selection.

Schedule C

krichter99 — Thu, 25 Feb 2021 16:36:18 GMT

I've changed the subject to make it more accurate.

This didn't work at all. The program asks about "Box 5-7" not "4-17". And there isn't anything in Box 5-7 so it doesn't help me to say that. There isn't any "What if my form has other boxes filled in".

Help please. This is a bug in the program. I have been trying to file my taxes for 3 days and I already paid!!

Re: Schedule C

AmeliesUncle — Thu, 25 Feb 2021 16:50:42 GMT

What version of TurboTax are you using? Are you doing it online or are you using the CD/downloaded version?

Re: Schedule C

krichter99 — Thu, 25 Feb 2021 16:53:27 GMT

I am doing it online. Thank you.

Re: Schedule C

AmeliesUncle — Thu, 25 Feb 2021 17:01:52 GMT

Which version? Are you using the "Self Employed" version? If so, you should be able to navigate to the section that asks about your business income and expenses.

Re: Schedule C

krichter99 — Thu, 25 Feb 2021 17:04:30 GMT

No, the most basic version. I have one 1099-NEC and no expenses. It's not a complicated situation and I don't want to pay for the self-employment version. I can't seem to get to Schedule C to solve this.

Re: Schedule C

AmeliesUncle — Thu, 25 Feb 2021 17:14:54 GMT

The basic version is not meant for Self Employment, so I'm unsure how to do that, or even if it is possible. If nobody is able to guide you how to do it (if it is even possible), you may need to upgrade to the Self Employed version (or use the basic version of the CD/download, which IS capable of doing it).

Re: Schedule C

DianeW777 — Thu, 25 Feb 2021 17:15:54 GMT

It seems you are using the TurboTax Desktop Basic version. You should delete Form 1099-NEC

The entry of Form 1099-NEC is a convenience and not a requirement. You will not see a 'Schedule C' exactly, rather a selection of income and expense categories that you can complete for your Schedule C.

Follow the steps here to enter your income without using the Form 1099-NEC and then delete that form from your file.

Open your TurboTax return > Search (upper right) > Type schedule c > Press enter > Click the Jump to link.
Select to Edit beside your business > Select Income > Select Other self-employed income, includes 1099-K and cash...
See image below

TurboTax CD/Download - Delete Form

Go into Forms Mode by clicking on the Forms icon in the top right of the blue bar.
In the Forms in My Return list on the left, click on the form you wish to open and delete.
Click on the Delete Form box at the bottom of the screen.
To return to the interview, click on the Step-By-Step icon in the top right of the blue bar

Re: Schedule C

krichter99 — Thu, 25 Feb 2021 17:50:51 GMT

I used the online version. But this explanation made sense and if I don't explicitly say that I have a 10900-NEC, I was able to enter the income and get my taxes filed.

Thank you!

Re: Schedule C

ReneeM7122 — Thu, 25 Feb 2021 23:55:08 GMT

Correct, if you are filing a Schedule C then you need the self-employed version. However due to COVID there is a deferral to SE and some customers are seeing an issue while trying to prepare their returns. This could be because of the way a question combination was answered or something on the return. The software tries to add the form if the election to defer self-employment taxes was made on federal input screens. To remove the error, you should cancel your election to defer taxes. Here's how to do it:

Open your return.

Click Federal on the left hand side.
Click Deductions and Credits on the top of the page.
On the page Tax Breaks, scroll down until you see Tax relief related to Covid-19.
Click Revisit next to Self-employment tax deferral.
Answer no to the question Do you want more time to pay self-employment taxes?

@AmeliesUncle

Re: I am stuck on schedule 3 line 12e, what do I do if the result is negative?

milo2345 — Mon, 01 Mar 2021 22:42:42 GMT

I have done this several times and the values are now zeros but it show as 5 errors.

Re: I am stuck on schedule 3 line 12e, what do I do if the result is negative?

AmyC — Mon, 01 Mar 2021 22:58:04 GMT

Turn the zero into blank. The program is trying to calculate an amount greater than zero for the credit to defer SE tax.

@milo2345