What is Maximum Deferral of Self-Employment Tax Payments line 18? I have a 0 in that line, but keep getting an error that says it's too large.

[ladysham]

Unfortunately, these instructions do not work for me.  I am getting a refund so wouldn't have to defer anything.  It doesn't allow me to get through the Smart Check because of this issue.  Any other suggestions?

[wrongsusan]

I am also stuck at this point, I do not want the deferral but even if I put in a 0, a0. or nothing at all on line 11, I keep getting the message that it is an error, the amount is too big.  this is clearly a bug with turbotax.  How to erase the deferral form without erasing all of the 1040/1040SR worksheet (which is where the error is flagged?)

[wrongsusan]

this did not work.  it was still flagged as an error.  Why click Yes, when I do not want the deferral anyway?

[JoannaB2]

You can elect not to defer self-employment taxes by:

1. Login to Turbo Tax.
2. Jump to Business tab, then click Business taxes..
3. Click Self-employment taxes, then continue.
4. The screen "Some of your self-employment taxes may be eligible for deferral" click continue.
5. Answer Yes on "Did you want more time to pay your self-employment taxes? 
6. On the next screen, enter the net self-employment income you earned from March 27, 2020 through December 31, 2020, or if you received steady self-employment income throughout the year, enter 76.5% of self-employment income.
7. The next screen will show how much self-employment taxes you may defer, enter zero.

You may also elect to defer the full amount by 12/31/2021 or pay half and pay the rest by 21/31/2022.:

1. Login to Turbo Tax.
2. Jump to Business tab, then click Business taxes..
3. Click Self-employment taxes, then continue.
4. The screen "Some of your self-employment taxes may be eligible for deferral" click continue.
5. Answer Yes on "Did you want more time to pay your self-employment taxes?".
6. Next screen, enter the net self-employment income you earned from March 27, 2020 through December 31, 2020, or if you received steady self-employment income throughout the year, enter 76.5% of self-employment income.
7. The next screen will show how much self-employment taxes you may defer, click continue.
8. The next screen will say "okay, you're all set up", an itemized payment schedule will appear.You're deferring and $ amount of your self-employment social security tax.

• $ is due on or before 12/31/2021.
• $ is due on or before 12/31/2022.
• ​​​​​​​

[ladysham]

Finally got this issue resolved by following the instructions in this thread.  

https://ttlc.intuit.com/community/taxes/discussion/re-what-does-it-mean-to-say-sch-se-t-max-deferral...

[pa55]

When I click YES, I get the prompt I'm not eligible for the deferral because I'm getting a refund. It still does not work. I've tried adding 0 or 0. or blank - still have the same issue. Help please. Thanks!

[LenaH]

If you are getting a refund on your taxes, you are not eligible to defer your self-employment tax. You can't defer tax amounts that you have already been paid. 

Per the IRS, a taxpayer who has deferred his or her payment of the employer's share of Social Security tax or 50% of the Social Security tax on net earnings from self-employment under section 2302 of the CARES Act is not eligible for a refund due to the deferral because the deferral amount is a deferral of payment, not a deferral of liability. 

For more information, please see Deferral of employment tax deposits and payments through December 31, 2020.

@pa55

[ladysham]

Follow the directions from this link and it should clear out the offending information that keeps giving you errors.  If you go through the program like I do, and skip around, it fills in some fields that need to be cleared.  I tried several solutions to clear them and this was the only one that worked.  

https://ttlc.intuit.com/community/taxes/discussion/re-what-does-it-mean-to-say-sch-se-t-max-deferral...

Hope it helps!

[LenaH]

If you are getting a refund on your taxes or had a loss on your Schedule C, you are not eligible to defer your self-employment tax. You can't defer tax amounts that you have already been paid or are not due.

Per the IRS, a taxpayer who has deferred his or her payment of the employer's share of Social Security tax or 50% of the Social Security tax on net earnings from self-employment under section 2302 of the CARES Act is not eligible for a refund due to the deferral because the deferral amount is a deferral of payment, not a deferral of liability. 

Deferral of employment tax deposits and payments through December 31, 2020

@mamwam

[castnerdac]

my client is getting a refund so should not be able to defer any social security taxes.  I cannot delete the deferral though.  I do not want the deferral

[Lara H]

Oh my god! I spent the last hours frustrated over this form. Thank you so much for the detailed instructions. It worked!