Question

Does Turbotax recalculate deductible SE Taxes if you choose to defer a portion of your SE Taxes?

Forum|Forum|5 years ago
April 12, 2021
1 reply
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I have input everything for 2020 taxes. Turbotax calculated the SE Tax deduction for my Schedule C income. At the end of working on my taxes I answered the question to defer the portion of my SE Taxes allowed for this tax season. I believe that would mean that I can not deduct all my SE Taxes in Business Income and Expenses because I am deferring a portion of them?

However it looks like that deduction amount has not changed (the taxes that I owe went down though).

Is this correct or do I manually have to recalculate the SE Taxes for the Business Income and Expenses deduction?

J

JeffreyR77

No, you are allowed to deduct the taxes as 2020 expenses.

CARES Act is allowing you to defer payment of these taxes until 2021 and 2022.

You do not need to make any changes to what you deduct based on what you elect pay for 2020.

L

lbonnAuthor

Thank you for the information! A friend had told me that I probably could not take the entire deduction if I was going to defer the portion of SE taxes because I was a cash business but I could not find a specific answer to the deductions, only the deferment, on the IRS website.