I'm social security exempt. How do I file that so I don't need to pay self employement tax?

[Llewellyn]

I am getting charged for self-employment tax, but I am social security exempt. I'm assuming that I should be exempt from paying that tax? How would I file that in Turbo Tax Home & Business? 

[JulieR]

Why do you think you are exempt from social security tax?

[Llewellyn]

Because I filled out the Social Security tax exemption form for religious reasons. I have never paid SS as I filled the form out when I was 16 and starting to work for an employer.

[fanfare]

If you are self-employed, now you are the employer.
I'm not aware of any form to claim that exemption - there may be one.
You'll have to override and file on paper via US Mail.
Then you'll have to cite your religious exemption when IRS come back asking why you used white-out on that line.

[Llewellyn]

It is form 4029 Application for Exemption from Social Security and Medicare Taxes and Waiver of Benefits. Thanks for your input!

[JulieR · Accepted solution]

You'll need to file your return by mail rather than e-file to claim your exemption.

According to IRS Publication 517 "If you filed Form 4029 and received IRS approval not to be taxed on those earnings, and you don't have any other income subject to SE tax, don't file Schedule SE (Form 1040). Instead, enter “Form 4029” on the dotted line next to Schedule 4 (Form 1040), line 57." 

To do this in TurboTax desktop, switch to the Forms view and Open Form "Schedule 4". When that form populates, double-click on the line 57 amount. This will take you to the 1040 Worksheet. Click on the amount on line 57, then Ctrl+D which will turn the amount red and enter zero on that line. When you print out the tax forms, write “Form 4029”  on the dotted line next to Schedule 4, line 57.

Please comment if you need additional help with this.

[Llewellyn]

What is the shortcut for Mac? When I double click on line 57 and click on line 57 of the 1040 form and hit Ctrl D it doesn't do anything...

[Llewellyn]

I found it. Override under Edit.

[JulieR]

In Mac you choose Override from the Edit menu in TurboTax. The following link goes over how to override. <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1899170">https://ttlc.intuit.com/questions/1899170</a>

[JulieR]

Yes!

[Llewellyn]

On my OH & MI state tax forms I saw entries for the SE Tax. I'm assuming I need to delete them out, because they are giving me credit for paying that and since I'm not paying it, then I'll probably need to pay a little more on state taxes? Am I thinking right on this?

[hannah j]

@JulieR  - thanks this is really helpful! I am trying to apply for the same but for non resident alien purposes. Would this be covered by 'Form 4019' or is that only for religious grounds? 

[Revaliza]

I see an answer from 2019 - but it doesn't apply - Can't find Schedule 4, and there is no line 57 on 1040. Can you please help?

[xmasbaby0]

@Revaliza You are posting to a very old thread that contains some outdated information.  Please explain your own issue and question clearly so someone will know how to help you.