Deferred Payment (self employed)

Forum|Forum|4 years ago
August 13, 2021
1 reply
13 views

I just received a letter from the IRS reminding me about my deferred payment due by December 2021. I would prefer to just make that payment NOW but I can't figure out how to do so on TurboTax. Forgive my ignorance, this was my second time ever filing as self employed without any help.

TurboTax Self Employed Online

Best answer by Critter-3

How individuals can repay the deferred taxes

Individuals can pay the deferred amount any time on or before the due date. They:

Can make payments through the Electronic Federal Tax Payment System or by credit or debit card, money order or with a check.
Should be separate payments from other tax payments to ensure they are applied to the deferred tax balance on the tax year 2020 Form 1040 since IRS systems won't recognize the payment for deferred tax if it is with other tax payments or paid with the current Form 1040.
Should designate the payment as "deferred Social Security tax."

Individuals making deferred Social Security tax payments in EFTPS should select 1040 US Individual Income Tax Returns and deferred Social Security tax for the type of payment. They must apply the payment to the 2020 tax year where they deferred the payment. Taxpayers can visit EFTPS.gov for details.

IRS self employment tax deferred info

https://www.irs.gov/newsroom/how-self-employed-individuals-and-household-employers-repay-deferred-so...

And see (starting with question 18)

https://www.irs.gov/newsroom/deferral-of-employment-tax-deposits-and-payments-through-december-31-20...

DanPaul02

Level 8

There is nothing to do in TurboTax. Just go to the IRS Payments website and make your payment.

Critter-3Answer

Level 15

How individuals can repay the deferred taxes

Individuals can pay the deferred amount any time on or before the due date. They:

Can make payments through the Electronic Federal Tax Payment System or by credit or debit card, money order or with a check.
Should be separate payments from other tax payments to ensure they are applied to the deferred tax balance on the tax year 2020 Form 1040 since IRS systems won't recognize the payment for deferred tax if it is with other tax payments or paid with the current Form 1040.
Should designate the payment as "deferred Social Security tax."

IRS self employment tax deferred info

https://www.irs.gov/newsroom/how-self-employed-individuals-and-household-employers-repay-deferred-so...

And see (starting with question 18)

https://www.irs.gov/newsroom/deferral-of-employment-tax-deposits-and-payments-through-december-31-20...

vampxbatAuthor

Level 2

Thank you for the detailed answer! When I'm making the payment though, there's no option for "deferred payment". Am I correct in assuming that "balance due" is the right option to select?