I just got a letter from the IRS about a reported "deferral" of social security taxes.
Is this something Turbo Tax did behind the scenes?
I do not recall this and do not even know where to find it.
It appears they are saying I owe another $500+.
Any ideas that could help so I can find it for this year - and make sure it does not happen again next year??
The first payment isn't due until Dec31, 2021.
IRS self employment tax deferred info
And see (starting with question 18)
Check if you have a Schedule 3 line 12e which goes to 1040 line 13.
See 1040 instuctions page 104 for schedule 3 line 12e SE tax deferral
The CARES Act allows someone with self-employment income on their 2020 tax return to defer paying part of the Social Security tax that's included in the self-employment tax, if certain requirements are met. The deferral appears as a refundable credit on Schedule 3 line 12e. It was subtracted from the tax you had to pay with your tax return. Half the deferred tax is due December 31, 2021, and the remainder is due December 31, 2022.
TurboTax asked whether you wanted to defer the tax. See the screen shot below. If you clicked Yes it went on to calculate the maximum amount you could defer, and then asked you how much you wanted to defer.
This will not happen again next year because the deferral is only allowed for 2020.
Still have questions?Make a post