How do I elect to defer self employment tax for tax year 2020?
New Part III has been added to Schedule SE to allow self-employed persons to figure a maximum amount of self-employment tax payments which may be deferred. All maximum deferral amounts will be carried to Schedule 3 (Form 1040), and the total amount that you may elect to defer may be further reduced.
To make the deferral election in Lacerte:
- Open the tax return.
- Open Screen 45.1 Self-Employment Tax (Schedule SE).
- Check the box for Elect to defer maximum allowed amount of Schedule SE or H taxes to 12/31/21 or 12/31/22.
- The Schedule SE Part III will still calculate and the deferral amount will transfer to the Schedule 3 line 12e.
- IRS Self-Employed Individuals Tax Center
- IRS Publications and Forms for the Self-Employed
- SEP, SIMPLE, Qualified Plans