SE Tax Don't Want Deferral

[dascpa]

I expect the answer to be - type in -0- to override.

Sch SE, part III, line 18 "Enter the portion of line 3 (SE profit) that can be attributed to March 27, 2020 through December 31, 2020.  The field is pink automatically.  Instead of asking IF the taxpayer wants to defer SE taxes I [assume] ALL of my clients will say NO to the deferral, that I should put in -0- and answer the question incorrectly (not that I really want to spend time trying to figure out 280 days worth of their profit anyways...)

[Terry53029]

No need to override, just put in zero, if client doesn't want to defer. It is a poorly worded question, but a 0 does what you want. Like you I don't think any of my clients will defer SE taxes

[Just-Lisa-Now-]

I know theres another discussion on this somewhere, but Im not going to go digging.

Put the correct amount of income on that Sch SE Part III Line 18.

Then theres an area on the 1040./1040SR Worksheet that you can get rid of the deferral option.

Scroll way way down the 1040/1040SR worksheet to a box titled Deferral for Certain Sch H or SE filers Smart Worksheet, Line 11 of that smart worksheet, enter zero.   Tada!   No more deferral.

[rbynaker]

I went down the rabbit hole through the instructions and Lisa has the technically correct answer.  But Terry's approach is easier and has the same result.

The IRS instructions for Part III of Schedule SE indicate you can use "any reasonable method" to determine SE income during the COVID period, including 77.5% in an example:

https://www.irs.gov/pub/irs-pdf/i1040sse.pdf

Rick

[qbteachmt]

This is from the earlier discussion:

"Putting 0 on Line 18 of that form isnt correct.

Go to the 1040/1040SR worksheet and scroll down to the Deferral for Certain Sch H and SE Filers smart worksheet looking box, Line 11 put a zero and nothing will flow to Sch 3 Line 12e."

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/deferral-of-se-tax/01/1...

[JessicaGardner]

When I enter 0 on Line 11, it says the amount is too large. Any thoughts?

[Vika K]

Thank you. same issue. is your line 10 a negative number? "0" does not work

[JessicaGardner]

Actually, the solution seems to be to leave line 11 blank. Just delete the 0.

[macca]

Wow awesome, that did it!!

[Julia5]

I've had the same problem. I tried the above solutions but when I leave Line 11 blank or put a zero in the line, it pushes me back to right under the 1099 and Schedule C. Does anyone know what I can put there?

[Just-Lisa-Now-]

That answer above wasnt complete, in order to be able to put 0 on Line 11 of that Smart Worksheet, you would have needed to fill in the wages it asks for on Line 18 of the Sch SE.

Im honestly not sure what is right, do we stick a zero on Line 18 of the Sch SE, or fill in the Sch SE and put the zero on Line 11 of that Smart Worksheet.  They both seem to accomplish the same thing and not defer the tax.

[Julia5]

Thanks. It just won't let me enter zero on line 11. Or leave it blank. I may need to just clear everything and restart. It's really frustrating. Thanks for your help.

[SophiaRose]

I've entered both the total earnings on Line 18 of the Sch SE and then entered a zero on Line 11 of the Smart Worksheet.  Unfortunately, each time I try to efile, it detects an error and sends me back to the Smart Worksheet to correct it.  It's an endless loop!!!

[Terry53029]

@SophiaRose Some folks like to do everything exactly like you are instructed, but some of live on the wild side 😁 If you fib a little and just put a zero on line 18 of the SE, that will solve your problem. If you read the IRS instructions, part 3 on the SE was added just for folks that want to defer the tax. I've efiled a couple of them with zero on line 18, and no problem so far

[SophiaRose]

Thanks, that worked!  Yay!!

[Bonney Lake Taxman]

Why didn't they put the smart worksheet with the SE form?  So we wouldn't have to look all over the place to find where to make the adjustment for less or for not at all.