On review, I keep getting "Sch SE-S: Max deferral line 18 is too large." I had a loss so not trying to defer taxes, but it keeps coming up. How do I fix it?

[KrisD15]

Please try entering 0 or leave it blank. 

If there is still an error, first make sure your TurboTax program is updated. 

TurboTax Online updates each time you open the account. For Desktop, click "online" located at the top left as you first open the software, then click on "Check for updates". 

Next, delete the Schedule SE and run through the program again. The form should regenerate without the deferral. 

For Desktop,  in Forms Mode, locate the form, click delete. 

For Online

Sign in to your online account

Continue working on your return

Click Tax Tools on the left side bar

Click Tools on the drop-down

Click "Delete a form" on the “Tools Center” screen

Scroll down the list and find SCH SE then click Delete

Confirm the delete

[texdude]

I have tried all 3 suggestions; blank, zero and delete the Schedule SE form. I also tried putting the negative number from 4c, all to no avail. I think there may be a glitch in the programming when there is a NOL. Anyone else have suggestions?

[texdude]

Also, if I try leaving it blank, when I run the review again it has repopulated line 18 with a zero.

[CatinaT1]

Try these steps in this order 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. 

[texdude]

I have followed your instructions twice. When I deleted the Schedule SE-T form, it made a new one right away; I even deleted the Schedule SE-S first and tried that, but it still makes another SE-T form.

I have tried answering both yes and no when asked if I would like to defer self-employment tax; both answers come back as "It looks like you're not eligible for this deferral". And every review gives me the same "Sch SE-S:Max deferral line 18 is too large" and drops a zero on line 18. It should be blank; I have negative income on 4c. How do I make line 18 PERMANENTLY blank?

[JamesG1]

Perhaps this will help.

In some cases, you may need to add temporary income to your self-employment activity to generate a balance due and allow you to access the self-employment tax deferral questions.

In TurboTax Online Self-Employed, I was able to remove self-employment tax deferral and pass Review. Follow these steps.

• 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, delete the dollar amount or change amount to $0.
• Click on Continue.
• At the screen Tell us how much you'd like to defer, delete the dollar amount or change amount to $0.
• 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.
• Remove temporary income and Review.

The self-employment tax deferral is an optional benefit.  It is also a deferral rather than forgiveness, so those amounts will eventually need to be repaid. Half of the deferred amount is due on December 31, 2021, and the other half is due on December 31, 2022.