I don't want to defer SE taxes!

[jhop22]

TT is making me defer taxes. I have clicked the box saying I do not want to defer any of my SE taxes, but it still does so by placing deferral amount on line 12e of Schedule 3 and then transferring that amount to 1040, line 31. What do I do?

[CatinaT1]

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:

1. From the left menu, select Tax Tools.
2. Select Tools.
3. Scroll to Delete a Form.
4. 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.

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. 

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

1. Return to the Deductions & Credits section.
2. Scroll to Tax relief related to COVID-19 and Show More.
3. Select Self-employment tax deferral and select Revisit.
4. 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.
5. Scroll down and select Wrap up Tax Breaks and Continue.
6. Run through the Federal Review again.

[jhop22]

I went through your steps, but when I say yes to tax deferrals, it tells me that I don't qualify for deferrals and does not give me an option to put in a certain amount as you suggest. Yet, while it says I don't qualify for deferrals, it keeps recording on Schedule 3/1040 that I do want deferrals.

[ReneeM7122]

You may need to delete the SE worksheet to clear the deferral.  The software could be stuck due to the answer 'yes' although you did receive a message that you are not eligible for a deferral.

Because of the CARES Act, you can postpone paying SE tax on income earned between 3/27/20-12/31/20.

Before deleting anything, try to enter a $0 instead of saying no (since that doesn't seem to work).

If necessary, delete the SE worksheet and start again:

How do I view and delete forms in TurboTax Online?

• Open or continue your return in TurboTax.
• In the left menu, select Tax Tools and then Tools.
• In the pop-up window Tool Center, choose Delete a form.
• Select Delete next to the form/schedule/worksheet in the list and follow the instructions.

For additional information refer to the following link:

SE Tax Deferral

@jhop22

[jhop22]

I cannot enter $0 because when I answer yes to wanting to defer taxes, it tells me I don't qualify and does not give me an option to enter $0. 

I deleted SE worksheet. Same result I am afraid.

[JamesG1]

You selected the self-employment tax deferral, perhaps unintentionally.  Consider adding temporary income to your self-employment activity.  This allows you to qualify for self-employment tax deferral and gives you access to the interview questions.

In TurboTax Online Self-Employed, 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, I have left the dollar amount that was previously entered, others change this amount to $0.
• Click on Continue.
• At the screen Tell us how much you'd like to defer, delete the dollar amount.
• 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. 
• Make sure you remove the temporary self-employment income.

The self-employment tax deferral is an optional benefit.  It is also a deferral rather than forgiveness, so those amounts will eventually need to be repaid. Half of the deferred amount is due on December 31, 2021, and the other half is due on December 31, 2022.

[ashelor01]

I don't see a Tax Tools menu option.

[JohnW152]

I can’t tell which version of TurboTax you’re using, but try clicking the Take me to my return or Pick up where you left off button.  This should populate the left pane, which has the Tax Tools dropdown.

The deferral is part of new legislation that allows self-employed taxpayers to pay only 50% of Social Security tax on net earnings from self-employment for the period March 27, 2020 through December 31, 2020 this year, and the other 50% next year.