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Payment of deferred self-employment taxes under the CARES Act

Level 2

IN 2020, the CARES Act allowed taxpayers to defer a portion of their self-employment taxes.  It would be helpful if ProSeries included the form (1040-SS) in the 2021 forms menu to compute and pay the deferred tax.

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4 Comments 4
Level 15

Wrong form... and to pay the deferred SS tax, the IRS has said it needs to be done via EFTPS.


Form 1040-SS:

This form is for residents of the U.S. Virgin Islands (USVI), Guam, American Samoa, the Commonwealth of the Northern Mariana Islands (CNMI), and the Commonwealth of Puerto Rico (Puerto Rico) who are not required to file a U.S. income tax return. One purpose of the form is to report net earnings from self-employment (SE) to the United States and, if necessary, pay SE tax on that income. The Social Security Administration (SSA) uses this information to figure your benefits under the social security program. SE tax applies no matter how old you are and even if you already are receiving social security or Medicare benefits.

"Tax software is no substitute for a professional tax preparer"
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Level 15

AND.... there still seem to be some issues; this thread is from August:


"Tax software is no substitute for a professional tax preparer"
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Level 15

We covered it in the Open Forum, for ProSeries, here:



If you sign up for the governmental e-newsletters, you get this info in email, and you get to choose which subjects to receive, such as Payroll and Not For Profit and other categories.

This one came about 5 hours earlier, today:

New IRS CP256V Notice – Repayment of deferred Social Security taxes under the CARES Act

In October and November of 2021, the IRS will be sending informational-only CP256V Notices to self-employed individuals and household employers that chose to defer paying certain Social Security taxes under the CARES Act. The new notice reminds them that the first installment of deferred Social Security taxes will be due by the end of the year.

The CARES Act allowed these types of taxpayers to defer the payment of certain Social Security taxes on their Form 1040 for tax year 2020 over the next two years. Half of the deferred Social Security tax is due by December 31, 2021, and the remainder is due by December 31, 2022.

The IRS will continue to issue these courtesy notices before each installment is due – no response is needed.

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Level 15

How do I make my repayment?

You can make the deferral payments through the Electronic Federal Tax Payment System (EFTPS), by credit or debit card, or with a check or money ord.... Note: you must make these payments separate from other tax payments to ensure they're applied to the deferred payroll tax balance. IRS systems won't recognize the payment if it's with other tax payments or sent as a deposit.


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