New for 2020 Individual Tax Returns

Individual returns are due April 15th this year with the exception of those in Texas who will receive an extension of time through June 15th if they have experienced hardship from the winter storms.

Even though the deadlines are back to normal, there are still some new items which offer relief to those affected by COVID. One such item is the main focus on this post - specifically, the SE tax deferral.

To start, where will it be claimed? The filer will need to use Schedule 3 and input the allowable amount on line 12e in Part II. Instructions can be found in the following IRS provided document on page 100. The deferral is meant for those who file Schedule H or Schedule SE, meaning either those with household employees or those who report income on the Schedule C.

The total from Schedule 3 Part II will then be carried to line 31 of the 1040, added in for the total in line 32 and then deducted along with other, if any, tax payments from the total tax liability, effectively lowering the amount due by April 15th. There you have it!

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