Question

Schedule SE-S keeps giving me an error for Line 18 saying max deferral is too large. No # entered is accepted.

Forum|Forum|5 years ago
March 17, 2021
1 reply
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Line 18 says that my max deferral is too large. I am showing a loss for line 4c to which line 18 is referring. It is asking which portion can be attributed to March - Dec of 2020. However no matter what number I enter in this line it gives me an error message and flags it. I deleted everything and reentered it and it still flagged it. Edited to add: Line 4c to which line 18 is referring says "Combine lines 4a and 4b. If less than $400, stop; you don't owe self-employment tax. Exception: If less than $400 and you had church employee income, enter -0- and continue" Obviously if I am showing a loss it is less than $400.

KathrynG3

To clear this error, leave the cell blank when prompted to defer self-employment tax.

Run the review again.

If you are no longer seeing the screens to edit, it may mean that you were initially eligible to defer self-employment tax due to a tax balance due, but are no longer eligible due to being eligible for a refund.

Delete the Sch SE that applies--(Sch SE-T is for Taxpayer, Sch SE-S for Spouse)--by following these steps:
1. From the left menu, select Tax Tools.
2. Select Tools.
3. Scroll to Delete a Form.
4. Scroll to Sch SE-T and/or Sch SE-S and select Delete.
Return to the self-employment income & expenses interview in the Income & Expenses section and select Edit/Add.
1. Select Edit for your business.
2. Scroll down to Done so that the Sch SE is recalculated.
3. Finish any other questions in the self-employment interview and click Continue.
Review the return again.