Can I defer paying my taxes?
Under Section 2302 of the CARES Act, a self-employed individual is able to defer 50% of the payment of Social Security Tax imposed on their net earnings from self-employment income.
However, there are rules.
- The income must have been earned between March 27th and December 31, 2020, and
- The tax must be paid back. Half of the deferred taxes are to be paid back by December 31, 2021, and the other 50% of taxes is to be paid back by December 31, 2022.
Note: Only half of the Social Security Tax may be deferred. Income and Medicare Tax are not permitted to be deferred.