Deferral for certain Schedule H and SE filers

Forum|Forum|5 years ago
May 10, 2021
1 reply
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For 2020 Schedule 3, Part II, line 12 (e), Deferral for certain schedule H and SE filers. When I read the word "deferral", I cannot help but to think it needs to be paid back at some point. The instructions that I read describes it but nothing on pay back. Does this have to be paid back next year?

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Just-Lisa-Now-

Intuit Community Champion

yes, its deferred to 12/31/21 and 12/31/22.
This link walks through the explanation fairly clearly in case the CEs you took for 2020 were too rushed and you didnt get all the details during those classes (they packed LOTS of stuff into them!)
https://www.thetaxinstitute.com/insights/tax-in-the-news/setax-deferral-cares-qotw/

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

qbteachmt

Level 15

It provides parity to the Self-Employed, to match what employer's are allowed:

"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."

From: https://www.irs.gov/newsroom/deferral-of-employment-tax-deposits-and-payments-through-december-31-2020#what-are-applicable-dates-by-which-deferred-deposits-employers-share-social-security-tax-must-be-deposited

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