SE Tax Don't Want Deferral

Forum|Forum|5 years ago
January 29, 2021
15 replies
56 views

I expect the answer to be - type in -0- to override.

Sch SE, part III, line 18 "Enter the portion of line 3 (SE profit) that can be attributed to March 27, 2020 through December 31, 2020. The field is pink automatically. Instead of asking IF the taxpayer wants to defer SE taxes I [assume] ALL of my clients will say NO to the deferral, that I should put in -0- and answer the question incorrectly (not that I really want to spend time trying to figure out 280 days worth of their profit anyways...)

ProSeries Professional

This topic has been closed for replies.

T

Terry53029

Intuit Community Champion

No need to override, just put in zero, if client doesn't want to defer. It is a poorly worded question, but a 0 does what you want. Like you I don't think any of my clients will defer SE taxes

Just-Lisa-Now-

Intuit Community Champion

I know theres another discussion on this somewhere, but Im not going to go digging.

Put the correct amount of income on that Sch SE Part III Line 18.

Then theres an area on the 1040./1040SR Worksheet that you can get rid of the deferral option.

Scroll way way down the 1040/1040SR worksheet to a box titled Deferral for Certain Sch H or SE filers Smart Worksheet, Line 11 of that smart worksheet, enter zero. Tada! No more deferral.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

rbynaker

Level 13

I went down the rabbit hole through the instructions and Lisa has the technically correct answer. But Terry's approach is easier and has the same result.

The IRS instructions for Part III of Schedule SE indicate you can use "any reasonable method" to determine SE income during the COVID period, including 77.5% in an example:

https://www.irs.gov/pub/irs-pdf/i1040sse.pdf

Rick

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