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The Coronavirus Aid, Relief, and Economy Security Act (CARES Act) provides relief to self-employed people by delaying the Social Security tax payment due in 2020 for two more years. Specifically, individuals were allowed to defer 50% of the Social Security tax on self-employed income earned from March 27, 2020, through December 31, 2020.<\/p>\n
Concerned that many people might have trouble making these payments, the IRS issued\u00a0an early\u00a0reminder that half of any\u00a0deferred Social Security tax is due on\u00a0December 31, 2021. The other half will\u00a0come due December 31, 2022.<\/p>\n
Self-employed individuals may\u00a0make these payments anytime on or before the due dates and in various manners, including by check or credit card. They can make payments<\/a> through the\u00a0Electronic Federal Tax Payment System, by credit or debit card, money order, or a check.<\/p>\n To ensure they’re applied correctly, the payments should be noted as a “deferred Social Security tax” and made separate from other tax payments.<\/p>\n What should you do if you’re unable to pay in full by the installment due date?<\/em><\/strong><\/p>\n Individuals who can’t pay the entire deferred tax amount should pay whatever they’re able to pay by the installment due dates to limit penalty and interest charges.<\/p>\n If the installment amount isn’t paid in full, the IRS will send the taxpayer a balance due notice. Taxpayers should follow instructions on the notice to make a payment or apply for a payment plan. They can also visit the\u00a0Paying Your Taxes<\/a>\u00a0page on IRS.gov for additional information about ways they can pay, what to do when they can’t pay, and viewing their tax account.<\/p>\n