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self employment form line 18

Hello and good evening everyone, i know i am asking basics questions and i am still in the process of learning with someone. I have a question regrading self employment form line 18. it states enter the portion of line 3 that can be attributed to march 27,2020 through December 31,2020. Is this line is asking me to put whatever is in line 3 and put it there or am i supposed to be calculating this . Again i am  really sorry i am asking these basic questions 

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Level 7

Hello, you do not have to feel sorry, and it is good you ask because we are all everybody here to learn, nothing is basic, it is something new. The CARES Act allows taxpayers to defer 50% of the social security tax from self employment due to the virus. It means the self employment tax will be reduced this year but it will have to be repaid between tax years 21 and 22. Everybody or most of all tax professionals think we have to be cautious about this election because it will increase your taxes next and the following year. Just be aware of the provision, if want you keep as it is, just enter 0 on line 18 and the self employment tax will remain the same. Just be aware and informed taxpayers that this deferment might increase their tax bill the following year. Thank you and good luck.  

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Level 7

Hello, you do not have to feel sorry, and it is good you ask because we are all everybody here to learn, nothing is basic, it is something new. The CARES Act allows taxpayers to defer 50% of the social security tax from self employment due to the virus. It means the self employment tax will be reduced this year but it will have to be repaid between tax years 21 and 22. Everybody or most of all tax professionals think we have to be cautious about this election because it will increase your taxes next and the following year. Just be aware of the provision, if want you keep as it is, just enter 0 on line 18 and the self employment tax will remain the same. Just be aware and informed taxpayers that this deferment might increase their tax bill the following year. Thank you and good luck.  

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Thanks for the response 

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Level 13

As far as I can tell, you are supposed to enter an estimated amount on Line 18 of Schedule E.  So if $10,000 was earned for the entire year (Line 3), maybe $7000-ish was earned during that time period that you should enter on Line 18.

Then if the client does NOT want to actually defer the amount (I generally recommend not to), then you can go to the 1040Wks, to Line 12e of Schedule 3.  You can change Line 11 of that worksheet to $0 if the client does not want to defer that amount.

Level 1

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Level 15

@jojosaint    Can you tell me where in Turbo Tax

NO..  PLEASE go to the TurboTax forum to ask your DIYer questions.  

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This is an Intuit site supporting tax professionals, and you are looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.


 

Former Chump..umm... AllStar.
"the game of life is hard to play"

If a post answers your question, click on *Accept as solution* for future searches

**bleep** you are rude as **bleep** i dont care what kind of site it is **bleep**

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Level 15

@she speaks the truth 

The people here are using programs that are not TurboTax. Asking here how to use TurboTax is rude, if you know that this is not a user group for TurboTax.

Offering that a person is lost on the internet, and offering the link for them to find the same type of community that is specific to TurboTax, if they are using TurboTax, is the right thing to do.

However, dropping into an internet peer user community for programs you are not using, when the people using the programs are virtually "at the office" as professional tax preparers working on their clients' tax returns, and then harassing them because it is you that is in the wrong place, is rude. If someone using TurboTax truly wants help, they should go to the place on the internet for using that set of tools. Not offering the link to them is rude. Harassing someone who offered that link to them, is rude.

In other words, @she speaks the truth 

You have become the Troll on the internet. There was no reason for you to even comment on this topic, unless you are using ProSeries to prepare your clients' tax return. Because that is where you are posting: a peer user community of ProSeries users.

Honestly, it's like you walked into a Country and Western Bar and want to complain that no one there is going to form a Symphony Orchestra ASAP to play a ballet that you want to dance to. You are in the wrong place on the internet. It really is that simple.

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"Level Up" is a gaming function, not a real life function.
Level 15

"**bleep** you are rude as **bleep** i dont care what kind of site it is **bleep**"

Based on that post, I'm sure you are a top tier expert in the field of rude.  Thanks for that informative post.  Now how about going back under that rock you crawled out from?

This week's special - free roadrunner dinner with every return (legal disclaimer - you catch it and we'll cook it)
Level 15

"i dont care what kind of site it is"

Yeah, that pretty much states the position, that someone thinks this is Social Networking and that their usual antics hiding behind their screen are going to fly here, too. Instead, the other people that are lost might actually appreciate being given the link to the TurboTax Community so that they can get the tax help they need.

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"Level Up" is a gaming function, not a real life function.
Level 15

Reported. 

AND I informed the PTB/moderators via that post that if they don't get this under control there may be a mass exodus of those that do all the heavy lifting 'round here (Champs & exAllStars included); it's not like they haven't been informed that keeping that barn door wide open was an issue.

Former Chump..umm... AllStar.
"the game of life is hard to play"

If a post answers your question, click on *Accept as solution* for future searches
Level 15

@jojosaint 

You seem to be lost on the internet.

You’ve come to a Peer User community for Intuit Tax Preparation products supporting tax preparation professionals using ProSeries, Proconnect and Lacerte , and you may be looking for support as an individual taxpayer.

Here is the link for the TurboTax Help community, for asking them about the same tool you are using.

Thanks.

 

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"Level Up" is a gaming function, not a real life function.
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