Cares Act Section 2302

[kdvill]

My husband and I each got letters today, January 22.  It is dated November 29, 2021.  Both letters took 2 months to get to us?  I don't think so,  It says it is due 12/21.  Well, that day came and went long before receiving the notice.  And also, I did not make the election.  I did not use the online version of TT, I bought the software package.  I went back and looked through my TT Q&A and there was nothing there about the deferral.  Only myself is self employed, not my husband, so why did he get a letter too?  Do we owe both amounts or just the one on the letter to me?  It's all confusing

[Critter-3]

When you file a joint return BOTH parties get identical letters even if it only pertains to one person. 

The deferred tax appears as a refundable credit on Schedule 3 line 12e, "Deferral for certain Schedule H or SE filers." It was subtracted from the tax you had to pay with your tax return. You have to pay half the deferred tax by December 31, 2021 (the end of this month), and the remainder by December 31, 2022.      

Click this link for more detailed info on Deferred SE Tax Payments. 

[kdvill]

Thanks for clearing that up,,, I understand and will pay today.   Hopefully no fines or penalties since the IRS clearly did not send notice in a timely manner.

[sathomas929]

Did any of you try to pay your deferred taxes online with the IRS?  I also received a letter in August (but it was sent to my maiden name, so I was suspicious).  I just received a letter today dated from November 29, 2021.  When I log into my irs.gov account it says I owe nothing, so I am thinking this may be a scam.  I never proactively elected to defer any of my taxes, but see a deferred amount on my final return.

[fanfare]

IRS web site doesn't track your deferred amount from Schedule SE.

That doesn't mean you don't still owe it.

Consult your filed tax return to see what you deferred.

[TuckerdogAVL]

Where do I enter the deferred payment that I paid in August 2021 that was due from 2020. 

[JamesG1]

The self employment tax deferral on the 2020 Federal 1040 tax return was to be paid back as explained here.

But the payment is not an entry on the 2021 Federal 1040 tax return.

Section 2302 of the CARES Act allowed businesses to elect to defer the employer's share of Social Security tax on wages paid to employees between April 1 and Dec. 31, 2020.

@TuckerdogAVL

[myonlineid]

If I understood your response correctly, the  deferred payment of the employer's share of Social Security tax (Cares Action Section 2302) for the self-employed doesn't have an impact on the 2021 tax return?

Thanks

[VolvoGirl]

Right.  You don't enter anything about it on 2021.

[gzdhhz]

Same for me as everyone - I did the deferral.

I paid 1/2 back as directed by the IRS in 2021.

Do I need to put this payment anywhere on my 2021 1040 return???

Thanks

[JamesG1]

The self employment tax deferral on the 2020 Federal 1040 tax return was to be paid back as explained here.

But the payment is not an entry on the 2021 Federal 1040 tax return.

[Grumpsalot00]

They got me too! The letter came yesterday. I went back and opened my 2020 software. I didn't have a tic for the selection but it gave it gave me the credit on the tax form anyway.  Lack of diligence on my part, I guess. Was so happy with the bottom line, failed to see how it got there. Ah well.