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Maximum Deferral of SE Tax Payments

Level 1

I'm in the Professional ProSeries. My client does not want the Maximum Deferral of Self-Employment Tax Payments. How do I select zero deferred?

Thank you for your help!

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10 Replies 10
Level 9

Enter zero on  Schedule SE Part III line 18  

 

Hope this helps

Level 1
 
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Level 15

@dkh  - your answer has evidently left Jane speechless.

This week's special - free roadrunner dinner with every return (legal disclaimer - you catch it and we'll cook it)
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Level 9

wonder if she's going with the old adage.... if you can't say something nice don't say anything at all  😃

nahhh... it was my great wisdom 

Level 3

Gave you a cheer - thanks!  But that sure doesn't "feel right".  My client had income during that time period and per the instructions on the form a figure should be entered.  But she doesn't want to defer any SE tax.  There should be an opt in/out checkbox or something.  Or "how much do you want to defer" once the max is calculated.  Are y'all sure we're not missing anything?

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Level 9

@JADinAZ  -  after doing several with zero  - I've since changed how I'm completing the SE deferral. 

1)  For Line 18 - I enter 77% of the net profit  -  (I've read where that is an acceptable method to use)

2) Go to Form 1040 worksheet, Part II, Deferral..Smart Worksheet, Line11      there is where you can amount your client wants to defer

 

Level 3

Wow dkh - BAM there it is!  That was close to impossible to find without help - thanks so much!  To anyone else who finds this page - this is the 1040/1040SR Worksheet - PAGE 6 - Deferral for Certain Schedule H or SE Filers Smart Worksheet - Line 11 - "Enter the amount to report on Schedule 3 line 12e".  That's a much cleaner way to handle it.  I don't like that ProSeries is defaulting to deferring the SE tax unless you find that "secret" spot to override it.  Apparently ProSeries is starting to "hide" things on that 1040 Worksheet - that's also where you find the $300 charity deduction for standard deduction filers - which "should" flow through from entries on Schedule A to anyone at Intuit who is listening - but nope you need to put your $300 on page 2 of the Workshet Line 10b as far as I can tell.  Thanks much dkh!

Level 9

You're welcome.   I should've edited my answer - glad you questioned it.

It appears that in PS20 the Schedule SE, Part III, line 18 is now highlighted in RED after the last PS20 update this week.  Makes it a little bit easier to find.

 

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Level 3

@The_AntiTax_Manthe problem for me wasn't that line - it was red when I first found it.  The problem is when you put a figure in that box ProSeries calculates deferred SE tax by default.  To override that you have to go to the 1040 worksheet and enter how much you want to defer so the calculated deferral doesn't flow through to the final 1040.  I personally am telling my clients about the deferral issue to let them choose, but am advising them against it.