How do I elect to defer self employment tax for tax year 2020?
New Part III has been added to Schedule SE to allow self-employed persons to figure a maximum amount of self-employment tax payments which may be deferred. All maximum deferral amounts will be carried to Schedule 3 (Form 1040), and the total amount that you may elect to defer may be further reduced.
To make the deferral election in ProSeries:
- Open the tax return.
- Open the Schedule SE-T for taxpayer or Schedule SE-S for spouse.
- Scroll down to Part III.
- Enter on line 18 the amount that attributed to the 3/27/2020 through 12/31/2020 time frame. This is the amount that ProSeries will treat as eligible for the exclusion.
- The Schedule SE Part III will still calculate and the deferral amount will transfer to the Schedule 3 line 12e.
How do I show a Schedule C is exempt from SE Tax?
- Open the Schedule C.
- In the list of checkboxes above line A there are checkboxes for if the taxpayer has an approved Form 4029, or if the taxpayer has an approved Form 4361.
- Checking the box applicable will remove the Schedule C income from the Schedule SE.