deferral of self employment tax

[pacoford]

My client does not wish to defer self employment tax. How do I bypass?

[chasetax]

zero on line 18 of schedule se

[IRonMaN · Accepted solution]

It's odd that nobody else has asked this question yet.

[pacoford]

Thank you!!! I was hoping it was that simple. 

[ngosyhan]

I defer self employment tax for my client.  Today I found out IRS did not give her that credit.

Not sure if the tax rule is up-to-date?  Does anyone use this self employment defer and IRS accepted it?

Thanks,

Yung

[chasetax]

@ngosyhan  I would not defer the tax-unless they really really don't have the money--first you will have to remember when preparing next years return, that the tax was deferred then explain to them that they owe more because of the deferral and lastly what if you forget to add back the deferral and they have to pay a penalty--who do you think they are going to blame!

[pacoford]

I completely agree with you. That is the advice I am giving my clients. Thank you!

[Laura J]

I had the same problem, any solution on your end?

[Taxgeek]

I allowed a deferral of some of the SE tax for my client.  ProSERies added the deferred amount as credit/payment.  This was disallowed by the IRS and the clients refund was reduced by the deferred amount.  This should not have been allowed by the program.