I have $773 due in self-employment social security tax. According to IRS, half must be paid this year. But TurboTax says 0 this year, full amount next. Is it correct?

[tben339]

I couldn't find any amount limits or thresholds on the IRS website.  IRS says pay half by the end of this year, and the 2nd half by the end of next year.  I've redone the section in TurboTax to make sure, it is definitely says $0 due by 12/31/21, and the full $773 due by 12/31/22.  What am I missing?

[MaryM428]

On your return go to :

• Deductions and Credits
• Tax Relief Related to COVID
• Self-employment tax deferral
• When it asks how much you want to defer, you have to do the math and put in the amount to defer.

You are correct that the IRS will allow you to defer 50% of the self-employment tax due this year.  

[tben339]

You're right - but you have to pay 50% by the end of 2021, and the second 50% by the end of 2022.
The problem is I'm putting the in full amount Turbotax says I can defer, and it's telling me $0 due by 12/31/21, and the full amount due by 12/31/22.  That's what I don't think is correct.  Shouldn't it be split 50/50 between 2021 and 2022?

[tben339]

From the IRS faq:

18. What are the applicable dates by which deferred deposits of the employer's share of Social Security tax must be deposited to be treated as timely (and avoid a failure to deposit penalty)?

The deferred deposits of the employer's share of Social Security tax must be deposited by the following dates (referred to as the "applicable dates") to be treated as timely (and avoid a failure to deposit penalty):

• On December 31, 2021, 50 percent of the eligible deferred amount; and
• On December 31, 2022, the remaining amount.
  
  So my question is whether Turbotax is functioning correctly when it tells me I DON'T have to pay 50 percent by December 31, 2021.