TurboTax is trying to calculate a tax payment deferral for self employment taxes but I'm getting a refund. It's stuck in a loop. How do I get it to stop?

[JamesG1]

In TurboTax Online Self-Employed, I was able to enter a self-employment tax deferral and pass Review. 

Then 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, I have left the dollar amount that was previously entered, others change this amount to $0.
• Click on Continue.
• At the screen Tell us how much you'd like to defer, change the dollar 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.

[bclelarge]

Thank you for the help!  By deleting the "0" that Turbo Tax had inserted into line 11 of the Schedule 3 "Deferral for Certain Schedule H or SE Filers Smart Worksheet", and leaving that line blank, I was able to exit the endless loop and pass the review.

[BalloonArtist]

I have read these accommodations to the SE-T deferral but the form remains.  My issue may be related to a negative income  (expenses exceeded income Sch C) -- as it seems to have no issue where I earned money.  Very frustrating.

[scottpet100]

I followed these steps, but I still encountered the endless loop when trying to review State. I live in California.

[andubby42]

I followed the instructions several times, still TT desktop isn't handling this correctly - I can't efile. When I go back to fix it, the error goes away, but reappears when I try to file. How about pushing a code fix to allow zero or blank to express "no covid deferral of SE tax"?

[JamesG1]

I wonder that you have a value under eligible self-employment income that is provoking the form?  This is found at the screen Let's start by getting your eligible income.

Try 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, change this amount to $0.
• Click on Continue.
• At the screen Tell us how much you'd like to defer, change the dollar amount to $0 or leave blank if it has no value.
• 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.

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.

[typat]

I agree.  This is brutal!!  I'm wasting so much time on this programming flaw.  Why won't TT fix it?

[JamesG1]

@typat

Are you able to access the self-employment tax deferral questions at:

• TurboTax Desktop Home and Business at Personal / Deductions & Credits / Tax relief related to COVID-19 / Self-employment tax deferral?
• TurboTax Online Self-employed at Federal / Deductions & Credits / Your tax breaks / Self-employed tax deferral?

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.

[TexasTimelyTaxpayer]

I wish I had found this thread in February when I filed. TurboTax generated a $180 refund for me with ZERO notification of a tax deferral election (apparently the 6.2% SE SS deferral under CARES Act), but I just received a letter from the IRS stating that I owe $300 and am due no refund. This certainly lines up with the $480 on this particular line, but I had HAD no idea TurboTax was doing this in the background and was asked no questions about deferrals. I'm excited for their phones to open up on Monday. I am going to be seeking $480 and a refund for my wasted time and effort dealing with the IRS (who couldn't clearly articulate what was wrong) and 6 months waiting for an anticipated refund. This is maddening and Intuit needs to take responsibility for their error.