Question

Why can't schedule 3 box 11 be zero to defer no income tax?

Forum|Forum|5 years ago
February 3, 2021
1 reply
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I tried putting zero in schedule 3 line 11 because I do not want to defer any income tax. Turbotax says that "Line 11 is too large" when I do so, but I would not think you can defer less than zero dollars. What amount should be in this box?

TurboTax Self Employed Online

P

PattiF

That number flows through from Schedule SE.

Here is a way to change the number to zero while not in the Form mode:

In order to enter the amount of the self-employment tax payment that you would like to defer:

Go to Deductions and Credits
Scroll to Tax relief related to COVID-19
Last item in this category is Self-employment tax deferral, Click Start
Do you want more time to pay self-employment taxes? Then Yes
Let's start by getting your eligible income, calculated by tax software
Enter self-employment income earned from March 27 to the end of the year in the box
Continue
The next screen will display the amount eligible for deferral. Enter the amount that you wish to defer. If no deferral is desired, enter zero.

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S

stewiss

I followed the instructions and I selected Self-Employment Tax Deferral - It asks if either of use need more time to pay... I checked 'No' and Continue - it returns 'It looks like you're not eligible for this deferral - since we are getting a refund this year - (that is true - we have a refund) - tells me to continue... I then go to Smart Check and it still comes back to Schedule 3, line 11 - which has zero but says the number is too large. We do have a refund that is reflected on line 10 as a negative number and is the refund amount.

We do not want deferral - what do I need to do? Why didn't it just take my 'No' to wanting a deferral? When I go back to the selection of Self-Employment Tax Deferral and come through the process again - I have to re-check the No response to the question of whether either of us need more time. Most other Yes/No entries are retained if I come back through that page or form. Why doesn't this 'No' stay in effect on a return to that page?

Also, instruction says that it should have come through a section asking for the March to December amounts. Since I checked 'No' to wanting more time, I assume it by-passes this step??? I did fill those in manually on the Sch-SE T and Sch-SE S, but that did not change the Quick Review Error. I even set them to zero in the Sch-SE forms and that did not change anything - still have the error.

KathrynG3

Yes, the step needed is bypassed if initially the question is answered no. Answer yes.

It is doing this possibly because there was an amount entered in this area and then changed and it is hanging on to that.

Typically, leaving the not applicable section blank is preferred. However, in this case, your reply is required.

Since entering 0, did not work, try entering 280/365 of your income for 2020 in this line. This should still result in you being ineligible but satisfy the calculation.