Question

Why does Schedule SE - have line 7 filled in as 137,700 and line 14 as 5,640? I didnt enter that information during the process. Ive filed, should I amend?

Forum|Forum|5 years ago
March 4, 2021
2 replies
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I always do my taxes the same, I've followed the same steps. Usually, I use SE short form, this 2020 form looks like a Long form? It has entered information I did not, and it is in a different font style, Comparing previous years' returns, with this year everything else checks out. This information also shows up on from when I google it.

TurboTax Self Employed Online

J

jtax

Employee

@ShanonW you are fine. No need to amend or worry.

There are some cases when you need to use the long for Schedule SE and sometimes when you can use the short form. TT will figure that out for you so it doesn't really matter which for it uses.

As for the numbers on line 7 and 14, those are numbers from the tax law. They are in an italic font style on the form from the IRS. https://www.irs.gov/pub/irs-pdf/f1040sse.pdf

If you read the descriptions to the left for the numbers you will see that line 7 is the max wage/SE income that is subject to the FICA portion of the SE tax. Line 14 is the the max income for which one can use an optional method to figure SE tax.

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S

ShanonWAuthor

Thank you so much!!! I was worried for sure.. That is confusing and I've never been prompted to use the long-form before, I'm not sure why it turned into that this year, as everything is pretty much the same. I appreciate your information so much..

Shanon

J

jtax

Employee

@ShanonW I did a little more research. It seems that the IRS revamped Schedule SE for 2020 taxes. There is no longer a Short schedule SE and no longer separate schedule SE for some uncommon situations. There is just one schedule SE.

this makes a lot of sense since no one is filling out the forms manually. TT will get the info it needs from you and put it in the right places on the right form. So why not get rid of two or three forms and combine into one. Your job is to be very careful reading the questions TT asks. I see people get in trouble because they breeze through the questions and therefore TT doesn't have all the info it needs to figure out what goes where.

But in your case there is no problem this year because of the Schedule SE.

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O

OliveMyLove2YOU

Did yours also have the 137,000 on line 9 but in the same font as the rest of your return? Mine has the lighter font on line 7 AND THEN on line 9 it has that giant number in the "normal" submitted numbers font... I am so worried about this!!!

S

ShanonWAuthor

Yes! Previous answers told me not to worry about it. I don't fully understand why it does this, but apparently, it is correct. It is concerning since it doesn't show during the process, and then all a sudden after you see that number.
best of luck

macuser_22

Employee

@ShanonW wrote:

Yes! Previous answers told me not to worry about it. I don't fully understand why it does this, but apparently, it is correct. It is concerning since it doesn't show during the process, and then all a sudden after you see that number.
best of luck

Because line 7 is prefilled by the IRS on the form - see the actual IRS form:

https://www.irs.gov/pub/irs-pdf/f1040sse.pdf

Line 7 is the maximum income subject the the SE tax.

Maximum income subject to social security tax.For 2020, the maximum amount of self-employment income subject to social security tax is $137,700.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**