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

[nana-nana]

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?

[MarilynG1 · Accepted solution]

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. 

[MGTAX]

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

[MGTAX]

given Turbo Tax generates quarterly estimated tax payment vouchers, can one use the voucher to make the payments for deferred self employment tax?  I know the dates on the vouchers would not be helpful but simply trying to find out if the address to send the deferred payments is the same or is there another way to correctly send these deferred payments to the proper address so that they will be applied against my deferred taxes.

[ChondelLO]

Please see the TurboTax Help article below for steps on how to obtain Form 1040-V (payment vouchers).

How do I get Form 1040-V? - TurboTax

[MGTAX]

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]

@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.

[MGTAX]

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

[MariaDG]

you can find the amount of self employment tax deferred on SCH 3, Line 12e.  You are required to pay 50% by 12/31/21 and the other half by 12/31/22.  You can pay online at irs.gov/payments.

[HughAllen]

UNFORTUNATELY does not print these payment vouchers for deferred Self Employment tax???

That's NOT an acceptable answer!

[MGTAX]

I agree with you on that!  I'm not sure if the deferral option was recently added due to Covid or if it has always been available.  If only due to Covid it could explain why TT does not yet handle.  It took a LOT of searching through various IRS how to in order to locate HOW you make the payment.  There is a way to set up the ability to send funds electronically to the IRS.  I was doing my daughter's taxes and she was the one who finally tracked that info down..

[HughAllen]

I concur that this update is from a Covid legislative "opportunity", but I still think that some sort of accommodation could be put in place. I would assume this is NOT an uncommon occurrence, so I'd think that we could get some Turbo Tax "heroes" to support this need...

[gloriah5200]

Unfortunately, IRS would have to create a special payment voucher for this purpose and then TurboTax could put it in place.

TurboTax cannot create forms and payment vouchers without IRS consent and if IRS were to consent, it would be available for all taxpayers.

MGRAINGER provided the answer above:

"you can find the amount of self employment tax deferred on SCH 3, Line 12e.  You are required to pay 50% by 12/31/21 and the other half by 12/31/22.  You can pay online at irs.gov/payments."