I just received letters from the IRS saying my husband I both owe $1,991 for deferring our social security tax for tax year 2020. We have NEVER deferred paying our taxes, and there wasn't a box to check or a specific detail that stated we could even do this. We have been using Turbo Tax for several years and have never had a concern. This is very alarming. This was an automatic default to defer by Turbo Tax.
The program did give you the choice on how much if any you wanted to defer and this was an election for each of the Sch C forms for each of you. The SE taxes were removed from the 2020 return and 1/2 of them were due 12/21 and the other 1/2 12/22 ... the IRS are sending reminder notices now with the payment directions and the amount.
Here are the screens you should have see in the program ...
On your 2020 return,
Check if you have a Schedule 3 line 12e which goes to 1040 line 31. And see instructions for 1040 Schedule 3 line 12e page 104.
https://www.irs.gov/pub/irs-prior/i1040gi--2020.pdf
How to pay the deferred self employment tax
https://www.irs.gov/newsroom/how-self-employed-individuals-and-household-employers-repay-deferred-social-security-tax
I do now see the tax paperwork regarding this amount but it doesn't explain that it was going to be deferred. Also, I never checked a box or filled out anything to approve this deferment.
I, also, know that I have to pay it or else there will be IRS penalties. No where was it clearly explained within the 2020 Turbo Tax filing information.
This was absolutely not a choice when I was preparing my taxes. I would not have deferred payment on any taxes.