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Where is the SECTION 2302 CARES Act deferred payment entered on tax return?

TrumpJ
Level 3
 
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11 Comments 11
dkh
Level 15

Are you asking how to pay the deferral for 2020 SE tax on the 2021 return ?  

TrumpJ
Level 3

no, it has been paid - where is that reflected on the 1040 as an offset to the deferred amounts?

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Just-Lisa-Now-
Level 15
Level 15
I dont think it goes on the 1040 anywhere.

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dkh
Level 15

I haven't even looked at 2021 Form 1040 but I wouldn't think it would be on there....unless there will be some special schedule to reconcile amount deferred to amount paid.

Just-Lisa-Now-
Level 15
Level 15
Its a 2020 deferment thats between the taxpayer and the IRS outside of the tax return, I dont see how or where it would belong on the 2021 1040.

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dkh
Level 15

I'm just throwing out the possibility that IRS will have an option to apply 2021 refund to the deferred balance.   No different than First Time Homebuyer Credit repayment.

Just-Lisa-Now-
Level 15
Level 15
oh maybe, Line 13e of Sch 3 does have a Reserved for future use.

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TaxGuyBill
Level 15

It is a tax for 2020, and payments are due by December 31st.  Why would it show up on a 2021 tax return that has payments due on April 15th (or later)?

 

dkh
Level 15

I didn't have any clients that deferred but I thought it was 50% 12/2021 and 50% 12/2022. 

TrumpJ
Level 3

My thinking is that (1) you 'deferred' the tax on the tax year 2020 Form 1040 - (2) the IRS is sending notices that 50% (or more) must be paid by December 31, 2021, (3) to close the 'loop' you'll reflect that you deferred the tax - paid the tax - offset the tax.  Ok, I'll stay tuned.

PATAX
Level 15

Didn't have any clients that utilize this either... Really what good is it?... Creates nothing but a future issue or work, in my opinion it should have never been offered.. 

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