Schedule "C" SE tax deferral

[RWG1950]

Have read TTB P.P. 1-10, 1-16 & 26-4. Just want to make sure I have this right.
For net SE earnings within the prescribed period during 2020, a self-employed taxpayer defers
payment of 1/4 of his 2020 (12.4% ) Soc Sec tax into 2021 and further defers 1/4 of the 2020 Soc Sec tax
into 2022 but must pay the remaining 1/2 as usual on the 2020 return.
The book refers to 50% for deferral, but I believe this calculates out to be the same.
If I'm wrong on how this works, I'd be obliged if someone out there would correct me.
Thanks for comments.

[Rapid Robert]

The draft form 1040-SE confirms that the deferral base period is March 27, 2020, through December 31, 2020. Instructions have not been released yet for Schedule 3 Line 12e, but we know that the employer share of Soc Sec taxes (not Medicare) is eligible for deferral, spread over two years. So for Schedule C filers, we know that the "employer" share is 50% of the total SE tax, and we know that 50% spread over two years would be 25% each year. Maximum postponement is $8,537.40

[Rapid Robert]

More questions/comments:

don't forget this applies to household employer taxes also (Schedule H).

"The repayment amounts are split equally between 2021 and 2022; however, your maximum deferral amounts are used to figure your equal repayment amounts, not the amount you actually deferred. For example, if your maximum deferral of self-employment tax payments is $6,000, but you only actually defer $4,000, your first repayment amount will be $1,000 and your second repayment amount will be $3,000"

It seems one gets the full amount as an adustment to income (the employer share), on Schedule 1, even though none of it may actually be paid in or for 2020. So how does one decide how much of your tax payments for the year (if not the full liability) are for SE Social Security vs SE Medicare, and also versus any of the many other possible taxes on the return?

The deferred amounts are due by 12/31/2021 and 12/31/2022. So with those dates, witll it be a separate filing and payment from the Form 1040? What is the penalty if you fail to repay on time the amounts deferred?

Note that employers don't have these problems because there is already a separate payroll tax return system (Form 941) with quarter-end due dates. Just Schedule C and Schedule H filers.

[Rapid Robert]

I finally got around to checking the TTB pages listed in the initial post. Page 1-16 is completely off-topic. I see some of my comments have been included/addressed in the TTB material.

Here is still a problem: the SE tax not reported on Form 941 (in other words, Schedule C or H) "must be paid through estimated tax payments by December 31, 2021, and the other 50% by December 31, 2022." But the estimated tax "equal amounts" due dates before and after are 9/15 and 1/15 the following year. So will a separate due date of 12/31 need to be added to Form 2210? What a mess.

[RWG1950]

You're right - it is a complicated mess. Talking about my own schedule "C" here, but I'd just as soon ignore
the deferal of the SE tax and just pay it and be done with it, but as addressed in the new TTB P.P. 1-16
(Author's comments # 6) I'd hate to miss out if congress does eventually enact payroll tax "forgiveness"
or the prescribed deferral.

[Jiggers]

Any information on Schedule "F" SE Tax deferal?

[Rapid Robert]

Any information on Schedule "F" SE Tax deferal?

The deferral applies to those who file Schedule H or Schedule SE. If your farmer files Schedule SE, then they follow the same procedure as everyone else.

[Rapid Robert]

as addressed in the new TTB P.P. 1-16 (Author's comments # 6) I'd hate to miss out if congress does eventually enact payroll tax "forgiveness" or the prescribed deferral.

Once again, there appear to be minor discrepancies between the PDF and HTML versions of TheTaxBook online weblibrary, regarding author's comment numbering and placement.

You are still referring to a completely separate topic on Page 1-16, which has nothing to do with this thread. The topic you keep on trying to conflate here has already been discussed in other recent forum threads here, including speculation as to whether any Congressional action would end up being a simple credit for everyone, offset by the deferral for those poor employees whose employers were foolish enough to follow the nearly useless executive order.