2020 TAX YEAR DEFERRED SOCIAL SECURITY TAX

[ethdal]

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.  

[Critter-3]

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 ... 

[VolvoGirl]

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-so...

[ethdal]

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.

[ethdal]

This was absolutely not a choice when I was preparing my taxes.  I would not have deferred payment on any taxes.  

[VolvoGirl]

I have the Desktop program so I don't know how the Online version worked for that part.  I was able to NOT defer the self employment tax and pay it all on my tax return.