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    Repaying Deferred Social Security Tax Reminder

    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 second half of any such deferred tax is due on December 31, 2022, while the first half was due last year on December 31, 2021.

    The repayment of the deferred self-employment 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 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 second half of the deferred Social Security tax by December 31, 2022, and such bills will include penalties and interest.

    The next M + O = CPE® Individual Tax Year-End Workshops are coming up in December and January. If you are not already registered, register here.

    The information provided herein is provided with the understanding that the author and publisher are not engaged in rendering legal, accounting or other professional service. As such, M + O = CPE, Inc. and the author disclaim any responsibility or liability for the information supplied herein or the application of said information.