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TWDesigns
Level 2

Part III Maximum Deferral of Self-Employment Tax Payments "Online"

I keep getting "Your completecheck™ to-do list" when going to the Review section. If I click Review the it takes me to the actual Schedule SE form and starts asking me to enter numbers and deduct lines.

 

I checked and it said this form was available. Is there a bug or is it still not complete yet?

 

Thanks!

1 Best answer

Accepted Solutions
AmyC
Employee Tax Expert

Part III Maximum Deferral of Self-Employment Tax Payments "Online"

COVID changed things. The SE is self-employment form. Line 18 is for the amount of money earned between March 27, 2020 and December 31, 2020. The self-employment tax on that portion can be postponed for payment in the following year. You can postpone that portion of your taxes due with no penalties or interest. If you want to pay your taxes in full this year, put a zero on that line.

 

If you are having a different issue, let us know what the screen says.

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11 Replies
AmyC
Employee Tax Expert

Part III Maximum Deferral of Self-Employment Tax Payments "Online"

COVID changed things. The SE is self-employment form. Line 18 is for the amount of money earned between March 27, 2020 and December 31, 2020. The self-employment tax on that portion can be postponed for payment in the following year. You can postpone that portion of your taxes due with no penalties or interest. If you want to pay your taxes in full this year, put a zero on that line.

 

If you are having a different issue, let us know what the screen says.

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gthomas61291
New Member

Part III Maximum Deferral of Self-Employment Tax Payments "Online"

It wont let me choose zero. It keeps bringing me back as an error.

DawnC
Employee Tax Expert

Part III Maximum Deferral of Self-Employment Tax Payments "Online"

Try $1 on that line in the review.   It is not asking for a deferral amount, you are just entering the portion of income that is eligible for deferral.   If that doesn't work, see this discussion for a way to get around it.   Try going through the Covid-19 tax relief section first, but if you get the ''Looks like you are not eligible for this deferral'' message, try the steps outlined in that link.  

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Cmag00
Returning Member

Part III Maximum Deferral of Self-Employment Tax Payments "Online"

Ok, so I don't want to defer next year but I already entered an amount, as if I do want to defer to next year.  I now understand I need to enter $0 or $1 on line 18 if  since I don't want to defer (thank you AmyC!), but I had already moved on to other things before changing the amount to $1 on line 18.  Now I don't know how to get back to that point in Turbo Tax to change it to $1.  How do I get back to that point .  Thanks!

gloriah5200
Expert Alumni

Part III Maximum Deferral of Self-Employment Tax Payments "Online"

Here are two methods to go back and remove the amount entered for se tax deferral:

 

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.

 

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.

 

 

 

Cmag00
Returning Member

Part III Maximum Deferral of Self-Employment Tax Payments "Online"

Thank you for the quick response, Gloriah

I tried both options you explained (great explanations by the way). I got through your 1st option and checked to see if it worked but the number I entered on line 18 was still there and I figured it would be, since it makes sense that it would need to be deleted or changed to zero. Note that TTax opened the actual tax form and prompted me to enter a number that was needed on line 18 of Part III Maximum Deferral of Self-Employment Tax Payments.  This happened during "wrap up and review" of "Federal".

Regarding your 2nd option explanation-  Tools > Federal Review at top right of the screen...etc..  It turned into a dead end. "Federal Review" does not populate at the top right of my screen per your instructions.  Perhaps the “Federal Review” won’t populate in that instance because I completed both my Federal and State taxes already? I haven't filed yet but maybe that is the hiccup that is blocking access to the function that allows me to edit line 18?

Though it may not matter in the end, better to delete unnecessary amounts I entered, right?

Other suggestions?

Thanks again!

Cmag

JamesG1
Expert Alumni

Part III Maximum Deferral of Self-Employment Tax Payments "Online"

You may have to add temporary income to your self-employment activity to gain access to the self-employment tax deferral interview questions.  Then follow these steps in the Step-by-Step

  • Across the top of the screen, click on Personal.
  • Across the top of the screen, click on Deductions  & credits.
  • At the screen How do you want to enter your deductions and credits? click on I'll choose what I work on.
  • Under Your 2020 Deductions & Credits, scroll down to Tax relief related to COVID-19.
  • Click on Start / Update 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 the dollar amount to $0.
  • Click Continue.
  • Scroll down and click Done with Deductions.
  • 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.

Remember to remove the temporary income.

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Cmag00
Returning Member

Part III Maximum Deferral of Self-Employment Tax Payments "Online"

Thanks James!

I added more income and continued with your instructions- "Across the top of the screen, click on Personal." But "Personal" does not populate anywhere to move into the "step by step". 

I tried other avenues BUT I think the problem will continue since I am getting a refund this year. TTax states I am not eligible to get more time to pay, so when I come to: Do you want more time to pay your self-employment tax?, and I click "Yes", I am told I am not eligible for more time to pay.  At that point, TTax does not allow me an opportunity to enter amounts in any way.

Cmag00
Returning Member

Part III Maximum Deferral of Self-Employment Tax Payments "Online"

So,   I just increased the "added income" to the point that it ensured I wouldn't be getting a refund!  DUH!!  Didn't have to do any special navigation (but thank you both for the instructions).  In the end, it was just a few screens of "continue" before I could zero out line 18 and then wrap it all up.  Went back and deleted the "added income" and voila, worked like a charm!

Thanks again and sorry for my brain freeze!

LILYAREAY
New Member

Part III Maximum Deferral of Self-Employment Tax Payments "Online"

The program won't accept 0. It keeps telling me to review again.

 

CatinaT1
Employee Tax Expert

Part III Maximum Deferral of Self-Employment Tax Payments "Online"

To get past this screen so you can file your taxes, you need to update Schedule SE-T. 

  

The process: delete Sch SE-T, take a quick run through of the self-employment to recalculate Sch SE-T, and then turn off the Max Deferral. 

  

To do this in TurboTax, follow these steps: 

  

First, delete Sch SE-T that applies 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, select Delete, confirm the deletion. 

Next, to replace Sch SE-T, 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.  

Lastly, revisit the section for the Self-employment tax deferral entry: 

  1. Return to the Deductions & Credits section. 

  2. Scroll to Tax relief related to COVID-19 and Show More. 

  3. Select Self-employment tax deferral and select Revisit. 

  4. Answer Yes at the next screen to get back to Let's start by getting your eligible income. 

    1. If you do not want to defer any self-employment income, "Enter your eligible self-employment income" should be blank. 

      1. Select Continue. 

    2. At Tell us how much you'd like to defer, "Enter amount" should be blank. 

      1. Select Continue. 

  5. Scroll down and select Wrap up Tax Breaks and Continue. 

  6. Run through the Federal Review again. 

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