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?

[rick1969]

In the interview portion, I told TT that I didn't need a deferral and then it confirmed I didn't qualify for a deferral but there is a worksheet that it's trying to calculate with a refund and doesn't know what to do with it. How do I delete that worksheet?

[DawnC]

Self-employed individuals should use Form 7202 to figure the amount to claim for qualified sick and family leave equivalent credits under the FFCRA on their 2020 tax return. These credits are available to eligible self-employed individuals if they were unable to work or telework or had to care for family members for reasons related to the coronavirus and are refundable.

If that form and related worksheet does not apply to you, you can delete them.   It's OK to delete forms that you know don't apply to your return, or are duplicated or blank.  Here are the general procedures for deleting unwanted forms, schedules, and worksheets in TurboTax:

TurboTax Online

1. Open your return in TurboTax. (To do this, sign in to TurboTax, and select the Take me to my return button.)
2. In the left sidebar, select Tax Tools> Tools.
3. In the pop-up window Tool Center, choose to Delete a form.
4. Select Delete next to the form/schedule/worksheet and follow the onscreen instructions.

Windows Instructions 

Switch to Forms mode.

1. In the left pane, select the form you want to remove. (if you don't see it, click Open Form at the top).
2. After the form is generated in the right pane, click the Delete Form button at the bottom of the window.
3. Follow any on-screen instructions to remove the form or forms.

Mac Instructions

Switch to Forms mode.

1. In the left pane, select the form you want to remove (if you don't see it, click Open Form at the top).
2. From the Forms menu, select Remove [form name].
3. Follow any on-screen instructions to remove the form or forms.

[rick1969]

Thanks for the response, but unfortunately the form you are referencing doesn't show up in the list when I select "Delete a form". I thought maybe it fixed itself so I went back through the process to have TT check it and it's still stuck on there. I don't know how else to delete what I don't need. I even went back through the interview process and it still is generating the problem.

[rick1969]

This is still unresolved.

[gloriah5200]

Since TurboTax is trying to calculate a tax deferral payment for self-employment tax, then you need to go back into that section of your return and enter that you want 0 self employment tax deferred. 

Unfortunately, you  may have missed the "SKIP" option when it first started that section and since it was started TurboTax will complete it.

Please complete the following steps to delete the self-employment tax deferral section:

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.

[rick1969]

I’m doing all that and getting to the federal review where it states that “line 11 is too large”. I have 0 entered in that box. I don’t know what else to do. It’s still giving me the error with 0 entered in line 11 which is the part of the worksheet where it’s asking how much I want to defer.

[DawnC]

Instead of trying to make the entries in the review section, go back through the interview section in TurboTax Online.   You may need to add some temporary income to be able to remove this error so you can e-file. 

Sign in to your return and choose Pick up where I left off

Click on Federal from the left menu

Click on Deductions and Credits from the top menu

Scroll down and click on See More Tax Breaks if you don't have the full list

Look for and Review the entries under Tax Relief related to Covid-19. 

Click Revisit / Enter / Edit next to Self-Employment (SE) tax deferral.   To update the form, answer YES to the first question (even though you don't want to defer these taxes).   Enter your eligible earnings (what you earned from 03/27/2020 - 12/31/2020) and on the next screen, enter 0 if you do not want to defer the taxes.   TurboTax will calculate the amount you are eligible to defer but you do not have to defer the tax, you can enter 0 in that field, and then you should be able to e-file. 

You can't defer the tax if you are showing a refund due to you.   So, if you completed the form while you were not showing a refund amount, but after entering additional information, you now show a refund - you will get a message that says ''Looks like you are not eligible for this deferral''.  

To be able to remove the adjustment in the interview, you can add another line item of income of 100K - that should be enough to allow you to edit the form.   Go back to the Self-Employment tax deferral, change the amount you want to defer to 0 - and then go back and remove the temporary income you added to get your return to a 'no refund due' state. 

 

[rick1969]

This is so frustrating. I did exactly as you suggested to get it to “reset” itself. It was working great. Got all the way to the end almost ready to file. Everything was fine. I went back at the point of the Federal income section to delete that temporary added income and allowed the interview process to walk me through. It gave me the screen that I no longer can defer payment because I have a refund. Final check...the same error it was giving me that prompted this post. The entry of 0 is too large.

I hate to consider it, but I’m beginning to wonder if I need to delete everything and start from scratch.

[KathrynG3 · Accepted solution]

To review the steps you've tried so far:

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

The process should be: 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 CD/Download, follow these steps:

First, delete Sch SE-T that applies by following these steps:

1. In Forms Mode, scroll to Sch SE-T and select it to open.
2. In the lower left corner, select Delete Form and confirm the deletion.

Next, to replace Sch SE-T, return to the self-employment income & expenses interview in the Business tab 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.

[DawnC]

How I got the form to reset was to first add the temporary income to Schedule C or H.    This takes you out of the ''you are getting a refund' status.    Then while it is in no refund status, I went through the SE deferral interview - said Yes, I want to defer tax.   Then entered 80,000 for eligible income earned from 03/27-12/31.   Then on the next screen said I want to defer 0.    After that, the summary screen showed 0 - and I had no errors.   Then I went back and deleted the temporary income.   And I still had no errors.    E-filing doesn't start until the 12th and there are updates coming soon!   

[rick1969]

Sounds good. Guess I'll need to see what the update does. I just did it all again using your numbers and your process and after deleting the fake income, the error popped again.

[rick1969]

I'm using the web based interface. When I go to the delete a form part, there is no Sch SE-T in the list, only a Sch SE-S.

[JamesG1]

Form Schedule SE-T means taxpayer.

Form Schedule SE-S means spouse.

Directions indicate to delete either one which appears in your tax return.

[KenKan]

My problem in this section, I could answer yes or no, but since I was getting a refund it would tell me I wasn't eligible but still want numbers and didn't have a skip option.  I then put in an amount of my self-employment tax calculation and it let me pass.  It would not let me leave it blank or 0.  I went through the form deletion and re-visit many times.

[shellellis]

That line should be blank not zero.