self-employment taxes

[lizviv]

Hello!

Curious to get your advice on this:

I am self-employed and file married, joint with my husband. Years ago we listed his name first on our tax return so he is now considered the primary filer. 

In 2020, I paid estimated taxes using my own SSN. However, we didn't get credit for those payments and didn't get the return coming to us. When I called the IRS this spring, they said the estimated taxes were still making their way from my account to my husband's. I was told to wait a month and call again to have this transfer manually entered. We still haven't received the refund we are owed and I have tried many times but can't get through to anyone to request the manual transfer.

1. How do I get through to someone to complete this process from 2020?

2. When I paid estimated taxes this year I used my husband's SSN so we didn't run into this same problem. How will this affect my social security in the future if I'm not getting credit for having paid related to my own self employment?

3. Is there a better way to handle what feels like an outdated and sexist situation?

Thanks so much! -Liz

[NateTheGrEAt]

Hi Liz,

That is definitely a frustrating situation and unfortunately not an uncommon one for married couples who file jointly and where one spouse makes estimated tax payments. We can only hope that someday the IRS will have enough funding to upgrade their computer systems to make things like this easier. 

With respect to your 2020 payments, it sounds like you've given the IRS more than adequate time to resolve the issue through normal channels and they haven't done so. I would recommend reaching out to the Taxpayer Advocate, which is an independent office that assists taxpayers when normal processes have failed. 

Home - Taxpayer Advocate Service (TAS) - Taxpayer Advocate Service (irs.gov)

You can reach the Taxpayer Advocate through the above website, call the national number 877-777-4778, or call a local office in your state which you can find here: 

Local Taxpayer Advocate | Internal Revenue Service (irs.gov)

As to your question about Social Security - your earnings should be credited properly for Social Security based on the fact that your name and SSN, not your husband's, is on the top of the Schedule C you file. However, you should check your Social Security records every year or two to verify that the amount is indeed being captured correctly. If there are any errors, you should follow up with Social Security to ensure they are corrected promptly - there is a statute of limitations of 3 years, 3.5 months to have your Social Security record credited.