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Level 5
April 30, 2021
Question

When a self employed individual elects to defer their Self Employment tax due on with their filing (derived from K-1 Partnership) is there any cost for paying late?

  • April 30, 2021
  • 2 replies
  • 10 views
The Cares Act allows Self employed individuals to defer their payment of SE tax until 12/31/21 and 12/31/22. Are their penalties or interest for making this election?
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2 replies

abctax55
Level 15
April 30, 2021

Nope.

HumanKind... Be Both
qbteachmt
Level 15
May 1, 2021

If your taxpayer already has prepayments with the IRS and there would be some refund, the SE you identify to defer will first reduce that refund, since it is already paid in and this provision is not a Refundable amount. So, they might or might not benefit.

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