Form 1040 Worksheet Schedule 3 Deferral for Schedule SE filers Line 11 refers to an allocation of income earned between March 27 and December 31, 2020.
At the check this entry, enter nothing--leave the response blank. Run the review again to confirm the issue is resolved.
The entry is needed to properly calculate deferring 50% of self-employment taxes.
By entering nothing and leaving the cell blank, this is effectively declining the option to defer any self-employment taxes, and will update the system.
It may be from the following scenario:
- While the return was in a balance due, the tax return was eligible for the Cares Act self-employment tax deferral option. This section was completed.
- However, as more details were entered and the results changed to a refund, the SE tax deferral option was no longer available.
However, if you are still experiencing unexpected results after trying to leave the cell blank, click this link for more solutions:
Resolving the Sch SE tax deferral adjustment.
