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New Member
posted Mar 24, 2021 12:25:45 PM

In Review, for Self Employment I am stopped by "Maximum deferral line 18 is too large" although I entered "0"?

The business has a net loss which must be confusing the software?

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1 Replies
Expert Alumni
Mar 30, 2021 5:09:30 AM

To clear this error since the income was negative, leave the cell blank when prompted to defer self-employment tax.

Run the review again.

 

If this does not clear the error, try:

  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.

If this does not clear the error, then click this link for more information: 

Workaround for Sch SE-T error for deferring Self-Employment Taxes.

 

This error can occur when you were initially eligible to defer self-employment tax due to a tax balance due, but are no longer eligible due to being eligible for a refund.