I had to put 0 on Line 18 for Schedule SE-T and Schedule SE-S. Is that ok?

[ninjanick]

Ok, after hours of trying to fix this issue with TurboTax, I finally had to file Line 18 of Schedule SE-T and Schedule SE-S with a 0.

I do not want to defer any tax payments. When I went to file, I kept getting this error.

I finally put 0, as it wouldn't let me file without putting a 0 like this.

And now that my taxes are finally filed, I see the Schedule SE-T didn't even go through (it looks like the form was deleted after putting the 0)...and the Schedule SE-S went though like this...

I'm very frustrated as I've never had issues with TurboTax...but this appears to be some type of bug.

1. Does anyone know if I'll have any issues by putting a 0 in Box 18?

2. Does it matter that Schedule SE-S has a 0 in box 18 and that Schedule SE-T form didn't even go through with the return?

Do any experts like @Opus 17 @CarissaM @DawnC @LenaH @WendyN2 or anyone else have feedback?

[WendyN2]

I will look into it...might take a few...

[WendyN2]

From prior looking into and reading up on this particular Form, and from the IRS guidance, this is an election for the tax payer to defer a portion of their SE Tax (as I think you already know). Since you are not allocating any portion directly to the "covid inception" time in 2020, the calculation will go through as it usually does for SE Tax.

Many people were applying for the SE Loan back in March, 2020, and therefore now it is an election to defer some of these costs to the taxpayer. I think you made the right choice and I have not come across anything in the IRS Instructions to indicate that this is required to elect:

IRS and 2020 Deferral of One Half SE Tax Explained

I hope this helps!

[ninjanick]

@WendyN2  - Thanks for the response.

My issue is I never chose to defer any funds, it asked if I wanted to, I said no, but it still created that form.

Upon more research, it appears it's some type of error within TurboTax.

https://ttlc.intuit.com/community/taxes/discussion/what-does-it-mean-to-say-sch-se-t-max-deferral-li...

Does it matter that one form was completely removed (Schedule SE-T) when I put the 0 on line 18 and the other form (Schedule SE-S) went through.

So - did everything go through correctly? I don't want to have any issues.

[WendyN2]

You did everything according to the IRS instructions regarding elective deferrals. The only way you would run into an issue, I presume, is if this year you try to obtain a PPP Loan and you have now elected to not defer one half of your self employment tax. This is a tricky year for all with this so I truly cannot guarantee that the IRS will not come back asking for further information. I have not seen that they are doing so, however, I would be remiss if I said you are all set (with respect to this unique situation) and then the IRS comes looking for more information. I am going to check one more thing on this.....

Ok, no, you are not making an error on this form by only entering -0- on Line 18. I would file it as it is, if everything else is correct on your return, if I were you and I'd feel safe.

[WendyN2]

Some additional information that might help ease your mind:

Electing the self-employment tax deferral amount for 2020 (Schedule 3, Additional Credits and Payments)

The third step is to for Etan to decide how much of the allowed amount he wishes to defer. The elected deferral is reported on Schedule 3, line 12e, and carries to line 31 of Form 1040. As explained above, the deferral serves to lower Etan’s balance due.

Note: Regardless of his decision, the full amount of self-employment tax is included in his total tax liability and one-half of the tax is claimed as an adjustment to income on Form 1040.

Repayment amounts in 2021 and 2022

The maximum deferral amount is split equally between 2021 and 2022. If the maximum amount is allowed and elected, Etan would repay $1,102 by December 31, 2021 and $1,102 by December 31, 2022.

If Etan is deferring something less than the maximum deferral amount, then the 2022 repayment is the smaller of $1,102 (one half of the maximum deferral) or the elected deferral amount. Any remaining deferral amount must be repaid in 2021. For example, if the deferral amount is $1,500, Etan would have to repay $1,102 in 2022 by December 31 and $398 ($1,500 - $1,102) in 2021.

The Schedule 3 worksheet is also used to calculate the two repayments depending on the maximum deferral, the allowed deferral, and the elected deferral.

See FAQs 21-24 in IRS’s Deferral of employment tax deposits and payments through December 31, 2020.

SO, REMEMBER - Section III on your SE is calculating your allowable amount, should you elect to defer you would then fill out Schedule 3. Since you are making the election to not defer, you will not be penalized for this. 

[winescl]

The same situation applies to me, but in my case, the entry was already 0, but the drop-down box says, "Sch SE-T: Max deferral line 18 is too large."  How can zero be too large?  I have changed that number a dozen times to other amounts, but when I try to transmit the returns it keeps kicking me back to this entry!  I've also tried to phone, but never get past a recorded, unhelpful message.  HELP.  My taxes are ready to file, but Turbo won't transmit.

[DawnC]

Delete the zero and leave that field blank - that should allow you to e-file.  @winescl

[peggylaynepe]

Thanks! I had the same issue and was very frustrated. Leaving the filed blank finally worked.

[JamesG1]

Adding $0 is fine because 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.

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.

[sheanne]

I am having the same problem of Line 18 needing to be filled out.  It is blank.  When I was asked the question did I want to refer I originally put no. and I got the error in review that line 18 needs to be filled out.  So I went back and said yes as suggested and it tells me that I am not eligible to defer since I am getting a refund.  When going through the review again. I still get the error that Line 18 needs to be filled out.  What should I do.  How do I get past this error?

Thanks,

[JamesG1]

You may need to add temporary income to your self-employment activity to generate a balance due and allow you to access the self-employment tax deferral questions.

In TurboTax Online Self-Employed, 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, delete the dollar amount or change this amount to $0.
• Click on Continue.
• At the screen Tell us how much you'd like to defer, delete the dollar amount or change this amount to $0.
• 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.

The self-employment tax deferral is an optional benefit.