Yes, it’s correct.
This is part of new legislation that allows self-employed taxpayers to pay only 50% of Social Security tax on net earnings from self-employment for the period March 27, 2020 through December 31, 2020 this year, and the other 50% next year.
To make the election to defer your self-employment taxes, do the following in TurboTax Online:
- Open your return
- If you open to the "Hi, let's keep working on your taxes!" screen, click Pick up where you left off.
- Click Federal in the left pane
- Click Deductions and Credits in the banner at the top
- On the Your Tax Breaks page, scroll down until you come to Tax relief related to Covid-19
- Click the dropdown, then Start or Revisit next to Self-employment tax deferral
- When you're asked Do you want more time to pay your self-employment taxes?, answer Yes
- Continue the interview.
