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New Member
posted Dec 22, 2021 9:59:41 AM

I have made my estimated payments but received a notice of installment due. Why would that be?

I have made all three quarterly payments this year, but I receive a notice that another installment is due 12/31
"Your installment for deferred payment of the employer's share of Social Security tax (Cares Act Section 2302) is due.

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1 Best answer
Level 15
Dec 22, 2021 10:22:01 AM

The CARES act was new for 2020. It has to do with paying the self employment tax if you had a Net Profit on Schedule C.

 

You need to pay it.  The self employment tax deferral was an optional benefit. It is also a deferral rather than forgiveness, so those amounts will eventually need to be repaid. Half of the deferred amount is due on December 31, 2021, and the other half is due on December 31, 2022.

 

Check if you have a Schedule 3 line 12e which goes to 1040 line 31.

3 Replies
Level 15
Dec 22, 2021 10:05:29 AM

The notice was for deferred Social Security payments from the 2020 tax return that was filed. 

The 2021 estimated tax payments you have made are for the 2021 tax return.

 

Go to this IRS website for how to pay the deferred taxes - https://www.irs.gov/newsroom/how-self-employed-individuals-and-household-employers-repay-deferred-so...

 

 

 

 

Level 15
Dec 22, 2021 10:22:01 AM

The CARES act was new for 2020. It has to do with paying the self employment tax if you had a Net Profit on Schedule C.

 

You need to pay it.  The self employment tax deferral was an optional benefit. It is also a deferral rather than forgiveness, so those amounts will eventually need to be repaid. Half of the deferred amount is due on December 31, 2021, and the other half is due on December 31, 2022.

 

Check if you have a Schedule 3 line 12e which goes to 1040 line 31.

New Member
Dec 22, 2021 10:31:30 AM

Thank you. That is very helpful, and I will check my return to verify the amount.