Self employment

[chicago_6]

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.

[KathrynG3]

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

[NCperson]

@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?

Since these deferments are taxes due on the 2020 tax return, why would they be reported as estimates against 2021 taxes as they do not satisfy any taxes related to the 2021 income tax report; they satisfy taxes related to 2020 only. 

just curious. 

[#4]

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?

[chicago_6]

Team,

I look forward to your clarification.  

Thanks.