I initially selected to postpone a portion of my self-employment taxes and have now changed my mind. Turbo Tax is not allowing the change. Help!

[joshandjaimesmom]

I initially selected to defer/postpone paying the social security portion of my self-employment taxes. I've now changed my mind. Turbo Tax in not allowing me to make the change! I have not filed yet or even completed my return.

[gloriah5200]

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.

Here is 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.

[crbAL2021]

I followed the steps suggest and continue to receive error message that I need to check the entry. The software states that the number is too large. The entry is zero. I've already paid the fee. Otherwise, I would have deleted the form and started over.

[LindseyLO]

Have you tried clearing your cache and refreshing? Help with doing so has been provided by clicking here.

[joshandjaimesmom]

Yes, it was very complicated to "undo" once elected. I ended having two different TT reps. call me. Only the second one knew how to help me make the change, but it was so complicated that I wouldn't be able to walk someone else through it now. I was told that there are a number of TT glitches at this time. Great thing is, they will call you if you if wish and are so very helpful!

[joshandjaimesmom]

Only a TT rep. was able to make the change for me.

[crbAL2021]

Thanks - I'll call.

[crbAL2021]

Yes - didn't work.

[JamesG1]

In many cases, the option for the self-employment tax deferral was generated at a point when the your tax return reflected: 

• A balance due, and
• Self-employment tax due. 

Subsequent entries changed: 

• Your balance due status,
• Your self-employment tax due, or
• Both. 

For this reason, it was suggested that you temporarily return your tax return to the status of:

• A balance due, and
• Self-employment tax due. 

So that you could access the self-employment tax deferral questions and remove that benefit from your tax return because subsequent entries made that benefit no longer available.

Steps that I have found helpful are listed below.   

• 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.

After completing these steps, you would reverse the entries that eliminated: 

• Your balance due status,
• Your self-employment tax due, or
• Both.

See also this TurboTax Help.  @joshandjaimesmom

[Edited 02/23/2021 1:11 PM PST]

[JamesG1]

I am guessing that the option for the self-employment tax deferral was generated at a point when your tax return reflected: 

• A balance due, and
• Self-employment tax due.

 Subsequent entries changed: 

• Your balance due status,
• Your self-employment tax due, or
• Both.

 For this reason, it was suggested that you temporarily return your tax return to the status of:

• A balance due, and
• Self-employment tax due. 

So that you could access the self-employment tax deferral questions and remove that benefit from your tax return because subsequent entries made that benefit no longer available.

Steps that I have found helpful are listed below.   

• 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.

After completing these steps, you would reverse the entries that eliminated: 

• Your balance due status,
• Your self-employment tax due, or
• Both.

See also this TurboTax Help.  @crbAL2021

[Melody55Carter]

These directions make no sense to me.  I do not see "federal" in a left pane.

[JamesG1]

Self-employment tax deferral was a feature of the tax code during the COVID years of 2020 and/or 2021.  This feature of the tax code is not available on the 2023 Federal 1040 tax returns.

@Melody55Carter