topic Self employment in Get your taxes done using TurboTax

Self employment

chicago_6 — Sat, 03 Apr 2021 19:11:00 GMT

Hi,

I am paying a portion of my self employment tax this year and next for the 2020 tax year. Turbotax indicates the amounts which are due, half by December 31, 2021 and the balance by December 31, 2022. Can I make monthly payments toward the tax as long as I pay the full amounts by the due dates?

Thanks.

Re: Self employment

KathrynG3 — Sat, 03 Apr 2021 20:00:38 GMT

That would be acceptable.

Payment options include:

mailing in a payment-address following the TurboTax instructions, or
by using either Direct Pay or
by using the Electronic Federal Tax Payment System (EFTPS).

See Deferral of employment tax deposits and payments through December 31, 2020, question and answer 29 How can an employer pay the deferred amount.

Next year in 2022, when completing your 2021 tax return, the payments will be entered in the Estimates and Other Income Taxes Paid section as Other Income Taxes Paid. As @NCperson pointed out, they are not technically estimates, but payment of deferred self-employment taxes and therefore part of the 2021 taxes due.

To get to this section in 2021, inside TurboTax, enter tax payments and select the Jump to link in the search results.

[Edited 04/03/2021 | 12:52 PM PST]

@chicago_6

Re: Self employment

NCperson — Sat, 03 Apr 2021 19:36:39 GMT

@KathrynG3 - can you please go back on the last part of your response?

Next year, when you complete your taxes, use this resource to know where to report the payments: Where do I enter my estimated tax payments?

Re: Self employment

chicago_6 — Sat, 03 Apr 2021 19:48:18 GMT

Team,

I look forward to your clarification.

Thanks.