What exactly is the “Cares Act Section 2302”? I have to make 2 installments of deferred payments totaling $1595. Husband is self-employed and no employees.

[monique11]

Just want to know what we are having to pay and why. I cannot find information on my forms.

[Critter-3]

The self employment tax deferral was an optional benefit.  It is also a deferral rather than forgiveness, so those amounts will eventually need to be repaid. Half of the deferred amount is due on December 31, 2021, and the other half is due on December 31, 2022.

Check if you have a Schedule 3 line 12e which goes to 1040 line 31.

See this video on how to pay

How do I find out how much I owe in 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.

[Mike9241]

why? in Turbotax step-by-step mode you saw a screen that showed something like

"your eligible income is the net self-employment income you earned from March 27.2020 through December 31, 2020.

enter your eligible self-employment income"

you enter an amount.

what Turbotax didn't show is that entering an amount would allow deferral of the FICA portion of the self-employment tax on that amount. 1/2 due 12/31/2021 and the rest 12/31/2022.  this is what Cares Act Section 2302 allowed you to do. if you didn't want the deferral you had to enter $0

the deferral amount will appear on form SE line 26 which transfers to schedule 3 line 12e

which then goes to form 1040 line 31

How to repay the deferred taxes
Employers can make the deferral payments through the Electronic Federal Tax Payment System (EFTPS) or by credit or debit card, money order or with a check. These payments must be separate from other tax payments to ensure they're applied to the deferred payroll tax balance. IRS systems won't recognize the payment if it is with other tax payments or sent as a deposit.

EFTPS will soon have a new option to select deferral payment. The employer selects deferral payment and then changes the date to the applicable tax period for the payment. Employers can visit EFTPS.gov, or call 800-555-4477 or 800-733-4829 for details.