Self Employment Payment help

Hi 18kwerner,

Thank you for your question today.

STEP 1:  DETERMINE THE AMOUNT OF YOUR SELF EMPLOYMENT TAX DEFERRAL.

Review your 2020 tax return where the Self-employment Tax Deferral was elected.   You can find the deferred amount on your 2020 tax return.  It is the same calculated number, just located in a couple of different places on your tax return. Choose whichever one you can find quickly and easily.

The number is located either on The Schedule SE, Self-Employment Tax,  Part III Maximum Deferral of Self-Employment Tax Payments (this section is located on the top of the second page of this form).  Go to line 26. 

Or

Located on Schedule 3 of your tax return, Part II Other Payments and Refundable Credits, line 12e Deferral for certain Schedule H or SE filers. 

Once you locate this number, you have identified the TOTAL DEFERRED SELF EMPLOYMENT TAX you still owe.  You must pay one-half of this amount by December 31, 2021 and the remaining one-half by December 31, 2022.

STEP 2:  DETERMINE HAVE YOU PAID ANY OF THE DEFERRAL.

First, you should review your bank accounts and confirm that you have not mailed a check or made an electronic payment to the IRS for any of the deferred amount.

Second, you should go to https://www.irs.gov/individuals/get-transcript   and get a Tax Account Transcript for 2020, which shows all payment types.  If you made an additional payment and it has been applied to your IRS account, it will be reported here.

STEP 3:  HOW TO PAY

If you determined you still need to make a payment for the ½ deferral, please follow the instructions here: https://www.irs.gov/newsroom/how-self-employed-individuals-and-household-employers-repay-deferred-social-security-tax

Please be sure to apply the payment to 2020 tax year US 1040 Individual Tax Returns and include Deferred Social Security Tax as the type of payment.   Note:  these payments should be made separate from any other payments you make to the IRS.