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:
- Delete the Sch SE that applies--(Sch SE-T is for Taxpayer, Sch SE-S for Spouse)--by following these steps:
- From the left menu, select Tax Tools.
- Select Tools.
- Scroll to Delete a Form.
- Scroll to Sch SE-T and/or Sch SE-S and select Delete.
- Return to the self-employment income & expenses interview in the Income & Expenses section and select Edit/Add.
- Select Edit for your business.
- Scroll down to Done so that the Sch SE is recalculated.
- Finish any other questions in the self-employment interview and click Continue.
- 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.