Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

CALULATING THE SE DEFERRAL OF SELF-EMPLOYMENT TAX PAYMENTS???

HOGANTAXES
Level 2

WILL SOMEONE PLEASE EXPLAIN TO ME WHY IS IT GIVING ME AN ERROR ON LINE 18 OF THE SE FORM TO CALULATE THE PORTION ON LINE 3 THAT CAN BE ATTRIBUTED TO MARCH 27TH- DEC.

IS THIS FOR ESTIMATED TAX PAYMENTS? IS IT A CREDIT FOR SELF EMYLOYED PEOPLE TO OFF-SET THE PORTION OF SELF EMPLYMENT TAX? PLEASE HELP! 

HOW WOULD I KNOW WHAT INCOME IS AFTER MARCH? SOME CLIENTS JUST GIVE ME SPREED SHEETS OF TOTALS.

THANKS!!

Labels (1)
0 Cheers
8 Replies 8
linette
Level 5

Taxpayers can defer payment of their ss tax and ProSeries I believe put this in as an error message so you consider it.

If you put a zero in the box -- Defer nothing and pay everything now -- it will solve the problem.

Otherwise review and advise client accordingly and enter the amount that they wish to defer.

HOGANTAXES
Level 2

THANK YOU! WHERE CAN I GET MORE INFO ON THE TOPIC? I HAVE BEEN PUTTING ZERO FOR EVERYONE BUT DIDNT WANT TO CHEAT MY CLIENT. CAN YOU FURTHER EXPLAIN WHAT HAPPENS WHEN ITS DEFERED?

0 Cheers
sjrcpa
Level 15

They pay it next year.

Look it up on irs.gov


ex-AllStar
0 Cheers
linette
Level 5

You can google search it or I think that may be even the explanation will be in the instructions for form SE.

I personally and advising my clients to pay it now.  Particularly if their income has not been reduced or was reduced but replaces with Unemployment.

Because I am not seeing this with my clients, I don't want to quote what I think the rules are.  It should be easy to find once you know what you are looking for.

 

HOGANTAXES
Level 2

so basically I just need to advise them we can defer it but it'll have to be paid back next year? seems like a pain. as for the w2 people and the comment regarding corrected w2s, is that going to put extra work on me? will I need to amend all those returns?!!

0 Cheers
qbteachmt
Level 15

"is that going to put extra work on me?"

It's all related: forms 941, 7200, 7202, 8915-E, 5329, CARES, FFCRA, I can't even remember all of the alphabet soup from 2020.

*******************************
"Level Up" is a gaming function, not a real life function.
0 Cheers
qbteachmt
Level 15

It's similar to how an employer got to defer deposit of employment taxes they owe, and how some employers forced employees to defer FICA in 2020 that is now going to be collected and remitted in 2021, requiring those employers to issue corrected W2 for 2020. It's to bring parity to the SE.

https://www.irs.gov/newsroom/deferral-of-employment-tax-deposits-and-payments-through-december-31-20...

 

*******************************
"Level Up" is a gaming function, not a real life function.
HOGANTAXES
Level 2

thank you so much for the link. makes a little more sense. still not 100% but im getting there.

0 Cheers