What does the maximum deferral of Self-Employment tax payment mean? It could be a tax knowledge or Language barrier. If someone can explain this to me in Spanish, great!

[anakare]

I did some self-Employment side jobs like Interpreter and doordash, and now that I'm about to wrap up everything, Turbo tax is asking me about the maximum deferral? I don't get it. It could be a super dumb question, but I just don't get it. Can someone rephrase this to me or explain it in Spanish lol Thank you 🙂

[BillM223 · Accepted solution]

Self-employment taxes are reported on Sch SE, which is generated in company with Schedule C, your self-employed income and deductions (for your side jobs).

These are the equivalent of the Social Security and Medicare taxes on a W-2.

Recent legislation because of the pandemic has allowed taxpayers the option to "defer" (delay) paying certain taxes until the next two years. For this reason, many taxpayers who have the money today are choosing to just pay it now, but you do have the option of delaying paying until later.

Note that the deferral is only on the Social Security part of your self-employment taxes, that is, on 12.4% of the SE taxes. And you can defer at most only 50% of this (so, 6.2%).

This is explained under Social Security tax deferral at this TurboTax Help page.

Si mi explicación no sea bastante clara, Ud. puede preguntar de nuevo por una respuesta in español, y un españolhablante le responderá. 

[anakare]

Thank youuuu so much! I get now.