Repaying Deferred Social Security Tax Reminder

As discussed in our post on July 21, 2021, some taxpayers may have chosen to defer a portion of their self-employment tax that was due as part of their 2020 federal income tax return. 

The first half of any such deferred Social Security tax is due on December 31, 2021, and the second half is due on December 31, 2022. 

The repayment of the deferred Social Security tax must be made separately from other income tax payments and should not be included in withholding, quarterly estimated tax payments or payments made with the current Form 1040. 

The IRS has indicated that taxpayers can make payments of the deferred Social Security tax using the Electronic Federal Tax Payment System (EFTPS) or by check.  Taxpayers should indicate that such payments are for “deferred Social Security tax.”  The IRS will send a bill to taxpayers who do not pay the first half of the deferred Social Security tax by December 31, 2021, and such bills will include penalties and interest.

Are you enrolled in our Individual Tax Year-End Workshop this December or January?  If you are not already registered, it’s time to enroll, so you’ll be fully prepared!  Register here.