Getting error 1040/1040SR Line 11 too large. Line 10 is a negative. I don't want to defer taxes anyway. What to put in line 11 to be able to file?

[mtaghammond]

Line 11 reads "0" which is too large since my Line 10 is a negative number. TurboTax will not let me file until this "error" is fixed. This pertains to the option to defer self employment tax.

[KathrynG3 · Accepted solution]

Line 11 is adjusted gross income, so it should have a value. To resolve this error, I recommend three troubleshooting steps:

First, try simply deleting the zero in the Check this entry field.

Second, 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. At Charitable Cash Contributions under Cares Act, if you made cash donations to eligible organizations, enter the amount up to $300 for all taxpayers except married filing separate, who would each have a maximum of $150 and Continue. Otherwise, leave this section blank, do not add 0 if this is not applicable.
7. I recommend running through the Federal Review again.

Third, if the error is still in the return,

1. Delete the Sch SE that applies--(Sch SE-T is for Taxpayer, Sch SE-S for Spouse)--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 and/or Sch SE-S and select Delete
2. 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.
3. Review the return again

[Edited 02/20/2021 | 5:06 AM PST]

@mtaghammond

[PharmerNate]

Thank you.  for me turbotax must have added the 0 but deleting it worked.  i wasted a lot of time trying to figure that out before i came across your answer

[homer86]

Inserting a blank instead of a zero worked for me as well.

[KathrynG3]

If you are still experiencing difficulty, you can try entering a value and then declining to defer the tax. I am including the basic instructions in full here, but with "Plan B of 0" and "Plan C of 280/366ths of income" reported, which has also worked for others.

Line 11 is adjusted gross income, and should have a value. But, the check this entry is signaling that the Self-Employment Tax deferral is not correct.

To get the system to update, try these two trouble shooting steps:

First, revisit the section for the Self-employment tax deferral entry and accept it, change it, and then decline it by deferring 0:

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"
      1. Enter 0 (as in 0 is the portion of self-employment I will defer) or alternatively,
      2. Enter 280/366ths of your income to reflect the income from March 27-December 31, 2021.
   2. Select Continue.
   3. At Tell us how much you'd like to defer, "Enter amount" should be 0.
      1. Select Continue.
5. Scroll down and select Wrap up Tax Breaks and Continue.
6. I recommend running through the Federal Review again.

Secondly, if the error is still in the return, it is because Sch SE-T or Sch SE-S is not updating properly. To update the return automatically, it is best to close out completely and close the browser, as well. Re-open in Chrome on a PC.

1. Delete the Sch SE that applies--(Sch SE-T is for Taxpayer, Sch SE-S for Spouse)--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 and/or Sch SE-S and select Delete.
2. 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.​​​​​​​
3. Review the return again.

[KathrynG3]

You're most welcome-There are a couple of different solutions that work depending on the rest of the circumstances.  I am glad the solution worked for you!

@PharmerNate 

@homer86 

[Clownmama]

Fixes on line makes no sense to me.  The 1949 says to enter the amount to report on Schedule 3, line 12e.  Schedule 3, line 12e, is deferral amount.  The error says line 11 is too large.  How can 0 be too large ??

A second problem I'm having is being able to reinvest an RMD taken before Cares Bill passed and allowed us to reinvest an earlier taken RMD...

thank you

[KathrynG3]

1. Regarding Schedule 3, Line 12e: Yes, you are correct, it is the Schedule SE deferral amount.  

1. The error says line 11 is too large is referring back to Form 1040, which is Adjusted Gross Income. And the intended message is that the SE Tax deferral is not available if you are in a refund situation.
2. If you worked on Schedule C before completing the rest of the return and were initially in a balance due situation, then the program will need to update in order to let you clear this error.

The easiest and fastest solution is to enter nothing--leave the response blank.

But, if you are still experiencing unexpected results, then temporarily trigger a balance due by adding income long enough to decline the SE tax deferral option, then remove the extra income.

To do this in TurboTax, follow these steps:

Enter a temporary amount as income in the self-employment section that will result in you not having a refund.

1. From the left menu, select Federal.
2. From the Income & Expenses, scroll to Self-employment income & expenses and Edit/Add.
3. At Your 2020 work summary, select Edit.
4. Under INCOME, select Add income for this work.
5. Add Other self-employed income, includes 1099-K, cash, and checks and Continue.
6. At Type of income, enter Temp income to remove deferral and enter a large amount, such as $100,000 and Continue.

Decline to defer any self-employment tax.

1. From the left menu, click on Federal.
2. Click the second tab from the left, Deductions & Credits.
3. Scroll down to Tax Relief related to Covid-19 and Revisit.
4. Select Self-employment tax deferral and select Revisit.
5. Answer Yes at the next screen to get back to Let's start by getting your eligible income.

1. Enter 280/366ths of your income to reflect the income from March 27-December 31, 2021. 
   1. This amount should be the same as the correct amount on Line 18 of Sch SE.

1. Select Continue.
2. At Tell us how much you'd like to defer, 
   1. Enter 0.

Remove the temporary income.

1. From the left menu, select Federal.
2. From the Income & Expenses, scroll to Self-employment income & expenses and Edit/Add.
3. At Your 2020 work summary, select Edit.
4. Under INCOME, select the Trash can icon next to Temp income to remove deferral and Continue.

For more details, see TurboTax Expert @DawnC's answer here, about 2/3 down the page: Resolve Sch SE-T Max Deferral Line 18 must be entered.

If the error is still in the return, it is because Sch SE-T or Sch SE-S is not updating properly. To update the return automatically, it is best to close out completely and close the browser, as well. Re-open in Chrome on a PC.

1. Delete the Sch SE that applies--(Sch SE-T is for Taxpayer, Sch SE-S for Spouse)--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 and/or Sch SE-S and select Delete.
2. 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.
3. Review the return again.

2. Re: A second problem about reporting reinvesting an RMD, you are correct, no minimum distributions were required for 2020. It is not necessary to report that it was reinvested unless an excess was distributed. If it was received and not reinvested within 60 days, it is a taxable distribution. 

For more information, see:

Worksheet 1-1, Figuring the Taxable Part of Your IRA Distribution from IRS Publication 590-B (2019), Distributions from Individual Retirement Arrangements (IRAs), and 

Publication 590-A (2019), Contributions to Individual Retirement Arrangements (IRAs)