topic Re: Deferred Payment (self employed) in After you file

Deferred Payment (self employed)

vampxbat — Fri, 13 Aug 2021 23:01:00 GMT

I just received a letter from the IRS reminding me about my deferred payment due by December 2021. I would prefer to just make that payment NOW but I can't figure out how to do so on TurboTax. Forgive my ignorance, this was my second time ever filing as self employed without any help.

Re: Deferred Payment (self employed)

DanPaul02 — Sat, 14 Aug 2021 00:07:20 GMT

There is nothing to do in TurboTax. Just go to the IRS Payments website and make your payment.

Re: Deferred Payment (self employed)

Critter-3 — Sat, 14 Aug 2021 01:01:32 GMT

How individuals can repay the 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.

IRS self employment tax deferred info

https://www.irs.gov/newsroom/how-self-employed-individuals-and-household-employers-repay-deferred-so...

And see (starting with question 18)

https://www.irs.gov/newsroom/deferral-of-employment-tax-deposits-and-payments-through-december-31-20...

Re: Deferred Payment (self employed)

Critter-3 — Sat, 14 Aug 2021 01:03:43 GMT

@DanPaul02

Wrong link for payment if differed SE taxes ... need to use the EFTPS system.

Re: Deferred Payment (self employed)

Mike9241 — Sat, 14 Aug 2021 05:02:46 GMT

see this link and note this key phrase "Should designate the payment as "deferred Social Security tax.""

https://www.irs.gov/newsroom/how-self-employed-individuals-and-household-employers-repay-deferred-social-security-tax

from what I was able to check Direct Pay is not available as of yet (can't specify its a deferred Social Security Tax Payment). however, the IRS has until 12/31/021 to update its payment methods. so if you want o pay now that leaves mailing a check or money order or using the EFTPS system which requires you to sign up then wait for a letter from the IRS with a code that will allow you to finish your sign up. while payment by check or money order is possible the IRS does not specify an address to which it should be sent on the link.

Re: Deferred Payment (self employed)

vampxbat — Mon, 16 Aug 2021 19:11:38 GMT

Thank you for the detailed answer! When I'm making the payment though, there's no option for "deferred payment". Am I correct in assuming that "balance due" is the right option to select?

Re: Deferred Payment (self employed)

Critter-3 — Mon, 16 Aug 2021 20:37:50 GMT

NO... If the option is not available in the regular IRS payment situation then do not enter it as a 2020 balance due. Read your notice carefully it tells you you must use the EFTPS system to make the payment where that option for deferred payment is available. If you cannot set up an EFTPS account then you can mail in a check. Again read the instructions on the IRS notice carefully.