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turbodionne
New Member

How do I get past Part III of Schedule SE-T (self-employment tax) "Max deferral line 18." I don't owe tax but can't get to line 21 as the form directs.

The form says I am supposed to enter 0 on line 21.
12 Replies
AnnetteB6
Employee Tax Expert

How do I get past Part III of Schedule SE-T (self-employment tax) "Max deferral line 18." I don't owe tax but can't get to line 21 as the form directs.

The entry for deferring self-employment tax can be found in the Deductions and Credits section of your return.  

 

Go to Deductions and Credits > Tax Relief Related to Covid-19 > Self-employment Tax Deferral to revisit your entry.

 

Be aware that if you are receiving a refund for your Federal return, then you will see a message on the screen saying you do not qualify to defer the self-employment tax.  If this is the case, even though you may have entered a number previously, there is nothing being calculated as part of your return due to your entry.  

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ginnelee413
New Member

How do I get past Part III of Schedule SE-T (self-employment tax) "Max deferral line 18." I don't owe tax but can't get to line 21 as the form directs.

Because I am not trying to defer any taxes, I have tried entering 0.  Turbo Tax is not allowing me to file my return.

KathrynG3
Expert Alumni

How do I get past Part III of Schedule SE-T (self-employment tax) "Max deferral line 18." I don't owe tax but can't get to line 21 as the form directs.

It is asking you to revisit the section regarding deferring a portion of the self-employment tax. If you were in this section before a refund was calculated, you were eligible. However, with a refund, you are no longer eligible.

 

Go back to the interview section to correct these entries and un-trigger any deferral that you can no longer take and probably later declined. You will need to initially accept it before declining.

 

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.
     
  6. 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.
  7. Select Continue.
  8. 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.

errorsabound
New Member

How do I get past Part III of Schedule SE-T (self-employment tax) "Max deferral line 18." I don't owe tax but can't get to line 21 as the form directs.

THIS DIDN'T WORK. IT WILL NOT DELETE THE FORM AND NOW POPULATES A RANDOM NUMBER IN LINE 18. I CANNOT DELETE ANY SCH SE forms at all. 

renarhodes
New Member

How do I get past Part III of Schedule SE-T (self-employment tax) "Max deferral line 18." I don't owe tax but can't get to line 21 as the form directs.

Same, this did nothing for me but waste even more time and I'm still stuck at the same spot. I've now paid $130 for my state and federal fees to be processed through my debit card and can't even finish filing. I cant' find a number to get a refund for my payment and so I am a sitting duck unsure of where to even go from here and growing more angry by the minute! 

gloriah5200
Expert Alumni

How do I get past Part III of Schedule SE-T (self-employment tax) "Max deferral line 18." I don't owe tax but can't get to line 21 as the form directs.

Here are two options to try.

Option 1:

To delete or edit the election to defer your self-employment taxes, do the following in TurboTax:

  1. Open your return
  2. If you open to the "Hi, let's keep working on your taxes!" screen, click Pick up where you left off.
  3. Click Federal in the left pane
  4. Click Deductions and Credits in the banner at the top
  5. On the Your Tax Breaks page, scroll down until you come to Tax relief related to Covid-19
  6. Click Revisit next to Self-employment tax deferral
  7. When you're asked Do you want more time to pay self-employment taxes?, answer No

 

Self-employed taxpayers are allowed to pay 50% of Social Security tax on net earnings from self-employment for the period March 27, 2020 through December 31, 2020.

 

Option 2 (Another method):

If you go to Tax Tools, then to Tools and then to Federal Review at the top right of the screen, it should open up "Some of your self-employment taxes may be eligible for deferral".

 

At this point, you can select skip unless you previously selected Continue and entered information in. 

 

If so, you will have to continue instead of skip at that point to remove that information.

 

When you get to the question, "Tell us how much you'd like to defer", you need to enter 0.  If you leave it blank, the software defaults to the full amount to be deferred.  If you want $0 deferred, you must enter 0 in that box.  Then, it will reset to 0 se tax being deferred.

 

The opportunity to defer se tax on a return was put in place by the CARES ACT, along with the option of employers deferral of depositing the employer portion of payroll taxes until later.

 

hill1943-430805
New Member

How do I get past Part III of Schedule SE-T (self-employment tax) "Max deferral line 18." I don't owe tax but can't get to line 21 as the form directs.

I need help from someone 

call me at [phone number removed] or [phone number removed]

Irene2805
Expert Alumni

How do I get past Part III of Schedule SE-T (self-employment tax) "Max deferral line 18." I don't owe tax but can't get to line 21 as the form directs.

You can call TurboTax and speak with an agent.  TurboTax customer service/support does not have a single phone number but has many different phone numbers based on the type of platform used.  So that we can direct your call to the best person/department to help you:

  1. Click on this link:  https://support.turbotax.intuit.com/contact/
  2. Select your TurboTax platform.  
  3. Ask your question / state your problem.  Do NOT use the word "refund' or you will get a phone number for tax refunds.
  4. Click Submit.
  5. On the next screen, choose the Call option and follow the instructions.  You will be given the approximate wait time.  

You'll get a toll-free number to a TurboTax expert who is specially-trained to handle your particular issue.

 

@hill1943-430805

bulldog1090
New Member

How do I get past Part III of Schedule SE-T (self-employment tax) "Max deferral line 18." I don't owe tax but can't get to line 21 as the form directs.

These steps did not work for me. I am only left with the option file my return incomplete because there has yet to be an adequate explanation or resolution to this problem.  I am due a refund and am unable to get it unless I deliberately file an incomplete return because of this one question which could trigger either an inquiry or audit. I'm horribly disappointed in this product.

JamesG1
Employee Tax Expert

How do I get past Part III of Schedule SE-T (self-employment tax) "Max deferral line 18." I don't owe tax but can't get to line 21 as the form directs.

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, 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.
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Schoo
New Member

How do I get past Part III of Schedule SE-T (self-employment tax) "Max deferral line 18." I don't owe tax but can't get to line 21 as the form directs.

I read all of the solutions but none worked.  I called the turbotax people and spent 2 hours on the phone.  No luck!  He ended the phone call by saying the solution was in the e-mail he just sent, then told me to hold on and disconnected the phone call.    He sent me the solution to resolve issues with a blank screen, which had nothing to do with the problem.  Not sure how to proceed.  I may have to not submit the related K-1.  It had a small negative profit so the IRS shouldn't be too concerned.

JamesG1
Employee Tax Expert

How do I get past Part III of Schedule SE-T (self-employment tax) "Max deferral line 18." I don't owe tax but can't get to line 21 as the form directs.

Is the Part III self-employment income generated from self-employment schedule C income or a K-1? 

 

Are you able to remove a K-1 and the error goes away? If the K-1 had a loss, is there still self-employment income generated?

 

Please clarify.

 

 

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