Deferrable Optional Methods Net Self- Employment Earnings

This deferment was for tax year 2020 only. Any deferred tax was due to be paid by December 31,2021. 

Enter an amount if you elected the Optional Method instead of the regular method to determine your self-employment tax and you wish to defer some of the Social Security tax on the income.

Deferrable Optional Method self-employment net earnings include:

• Non-farm optional Method
  • Net profit or Loss from Schedule C , line 31
  • Schedule K-1 (Form 1065) Box 14, Code A (other than farm partnerships)
• Farm optional Method
  • Total of
    • Schedule F, line 34 Plus
    • Schedule K-1 (Form 1065), Box 14, Code A
  • MINUS- Amount you would have used on Schedule SE, Line 1B had you not used the optional method. 

You must have determined how much of this income is attributable to the time period between March 27, 2020 through December 31,2020. The IRS indicates you could use any reasonable method to determine the income attributable to this time frame. A reasonable method will accurately reflect the time when income was earned and deductible expenses were paid. In most cases, a division of the amounts based on the number of days in each period will be considered reasonable.

The total net earnings used to calculate your self-employment tax using the optional methods is provided for you in the program.