Deferral of SE tax

Max deferral line 18 is too large

i have entered 0 but it keeps saying 

Max deferral line 18 is too large

any help with that?

Hi abctax55. I guess I wasn't clear.

If an employer were going to defer, that deferral would happen on the payroll tax return (Form 941). So I was nervous, thinking that if the deferral was required, then I filed all my 941s wrong.

The Form SE says "Enter the portion of line 3 that can be attributed to March 27, 2020, through December 31, 2020." It isn't phrased in such a way that it sounds optional. The software doesn't phrase it in such a way that makes it sound optional. If I enter 0, that makes it sound like all their self-employment was between January 1 - March 26, which is false. Call me paranoid, but I get nervous putting something on a tax form that isn't true.

But if y'all tell me that I can put 0 there, I'll put 0 there.

@ShoeBox Taxes 

"I'm not sure who this was directed to?"

Your topic here for how to use ProSeries for the client's data, has now been hijacked by what appears to be TurboTax users. They seem to be trolling the Lacerte, ProSeries and ProConnect community.

They don't seem to realize that to Help Each Other, as a Community, they should go to the TurboTax Community forums, here:

https://ttlc.intuit.com/community/discussions/discussion/03/302

And instead, are interfering with your ability to do your job for your clients.

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@zanie wrote:

I have a client that is self employed and chose the SE deferral. When she got her refund it was exactly shorted the amount of the deferral. She called the IRS and they told her that she didn't qualify and that they needed some kind of documentation. I filed her taxes on February 12 and the Proseries program automatically put the data in for the deferral. They told her that their mess up was that she should have gotten a letter. Anyone having this experience?

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No, it didnt automatically put it in for deferral, you entered the wages that taxes could be deferred on, and then you didnt opt out.

If they had a refund, you cant defer, the money was already paid in, so they reduced the refund.

@Mike Chaput 

Newsflash: the IRS tells you this is what happens. Intuit has nothing to do with it. Why would you even think that? Did you read the info provided in this topic?

Are you using IRS resources:

https://www.irs.gov/newsroom/deferral-of-employment-tax-deposits-and-payments-through-december-31-2020

"30. Is a self-employed individual who defers 50 percent of the Social Security tax on net earnings from self-employment income, or a household employer that defers the employer's share of Social Security tax under section 2302 of the CARES Act, eligible for a refund of the deferred amount of tax at the time the taxpayer files its Form 1040, Individual Tax Return? (added July 30, 2020)

Generally, no. A taxpayer who has deferred his or her payment of the employer's share of Social Security tax or 50% of the Social Security tax on net earnings from self-employment under section 2302 of the CARES Act is not eligible for a refund due to the deferral because the deferral amount is a deferral of payment, not a deferral of liability. Therefore, the deferral itself does not result in an overpayment of taxes reported on Form 1040. However, if a household employer is eligible for advanceable paid leave credits under the FFCRA and reports those credits on Schedule H, Form 1040, the taxpayer may receive a refund of the paid leave credits even while deferring the employer's share of Social Security tax. This does not apply to credits for sick leave and family leave equivalent amounts for self-employed individuals.

Self-employed individuals and household employers should consider deferrals under section 2302 of the CARES Act in determining their estimated tax payments and any income tax withholding from wages and other sources of income. Publication 505, Tax Withholding and Estimated Tax for use in 2020 provides more details on determining these amounts."

That's already in this topic. It helps to Read the forum you seem to want to flag with your complaint, in case you didn't truly understand the situation.

IRS began sending letters this week.

Would be nice to inform your clients at the time you give them the completed return. Also would be nice if the client letter mentioned it.