I have chose defer the self employed tax by paying the rest at dec 2021 and dec 2022.

Forum|Forum|5 years ago
February 25, 2021
2 replies
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I have chose defer the self employed tax by paying the rest by DEC 2021 and DEC 2022. I am wondering why turbo tax did not offer any payment voucher? is it really interest and tax free for deferring the tax?

Best answer by MarilynG

Yes, deferring your Self Employment Tax is interest and tax-free.

TurboTax does not print vouchers for this purpose, unfortunately.

Click this link for more Self Employment Tax Credits.

MarilynGAnswer

Level 15

Yes, deferring your Self Employment Tax is interest and tax-free.

TurboTax does not print vouchers for this purpose, unfortunately.

Click this link for more Self Employment Tax Credits.

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MGTAX

Level 2

so if Turbo Tax does not create the vouchers, how and where does one make those payments?

MGTAX

Level 2

I see someone responded to your question on deferred self employment taxes, but looking at the link they provided i did not see any info on how and where you need to send the payment for this year and next year. Have you found anything specific regarding that?

JamesG1

Level 15

@MGTAX

Payment is made on the quarterly IRS Form 941.

See this IRS FAQ 29. How can an employer pay the deferred amount of the employer's share states:

The employer may pay the amount it owes electronically using EFTPS, by credit or debit card, or by a check or money order. The preferred method of payment is EFTPS. If an employer is using EFTPS, in order to pay the deferred amount, an employer that files Form 941 should select Form 941, the calendar quarter in 2020 to which its payment relates and payment due on an IRS notice in EFTPS. An employer that files annual returns, like the Form 943, 944, or CT-1, should select the return and 2020 tax year to make a payment. For more information, visit EFTPS.gov, or call 800-555-4477 or 800-733-4829 (TDD).

For example, if an employer that files Form 941 wants to pay $300 of its deferred employer's share of Social Security tax, $100 of which is attributable to the second calendar quarter of 2020, and the other $200 of which is attributable to the third calendar quarter of 2020, the employer must make two payments through EFTPS. Each payment should be made for the calendar quarter to which the deferral is attributable, and the entry in EFTPS must reflect it as a payment due on an IRS notice. Thus, the employer would pay $100 for the second calendar quarter of 2020 using EFTPS and select payment due on an IRS notice in EFTPS while doing so and would also separately pay $200 for the third calendar quarter of 2020 using EFTPS and make the same selection.

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MGTAX

Level 2

Thanks for the response. Had one question - does this still hold true if the SEP is funded by the employee? I am doing my daughter’s taxes and her employer was paying her on a straight 1099. As such, her employer did not fund the SEP, she did.

Thanks,

Mike