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Department of the Treasury 2020 Internal Revenue Service Instructions for Form 1040-SS U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico)

Section references are to the Internal Revenue providing required qualified sick leave Maximum income subject to social se- Code unless otherwise noted. wages and qualified family leave wages. curity tax for 2020. For 2020, the For more information, see the instructions maximum amount of self-employment General Instructions for Part I, lines 4 and 12. income subject to social security is The FFCRA also helps self-employed $137,700. individuals affected by coronavirus by Future Developments Optional methods to figure net earn- providing paid sick and family leave For the latest information about ings. For 2020, the maximum income for credits equivalent to those that employers developments related to Form 1040-SS using the optional methods is $5,640. and its instructions, such as legislation are required to provide their employees for enacted after they were published, go to qualified sick and family leave wages paid Reminders IRS.gov/Form1040SS. during the period beginning April 1, 2020, and ending March 31, 2021. Form Maximum income subject to social se- What's New 1040-SS filers will claim these credits on curity tax for 2021. For 2021, the their territory income tax returns, and not maximum amount of self-employment Coronavirus tax relief for certain indi- Form 1040-SS. income subject to social security is viduals. These instructions have been Disaster tax relief. To find information $142,800. revised and are being rereleased to reflect on the most recent tax relief provisions for the changes made to the Deferral Due date of return. The due date to file taxpayers affected by disaster situations Worksheet for Filers With Amounts on Form 1040-SS is April 15, 2021. see Tax Relief in Disaster Situations. See Line 3 or Line 4 of Form 1040-SS in the Pub. 547 for discussions on the special Estimated tax payments. If you expect the instructions for Part I, Deferral for rules that apply to federally declared to owe self-employment (SE) tax of $1,000 certain Form 1040-SS or Schedule H disaster areas. or more for 2021, you may need to make (Form 1040) filers. estimated tax payments. Use Form Coronavirus Aid, Relief, and Economic Automatic 60-day extension. Certain 1040-ES, Estimated Tax for Individuals, to Security (CARES) Act permits certain taxpayers affected by federally declared figure your required payments and for the individuals who file Form 1040-SS and/or disasters may be eligible for an automatic vouchers to send with your payments. Schedule H to defer the payment of 50% 60-day extension for filing returns, paying Access your online account. Go to of the social security tax imposed for the taxes, and performing other tasks required IRS.gov/account to securely access period beginning on March 27, 2020, and by the IRS. For more information, see Pub. information about your federal tax ending December 31, 2020. New Part VII 547. account. You must authenticate your has been added to allow self-employed Virtual currency. You will need to identity. View the amount you owe, review persons to figure a maximum amount of answer the question on page 1 of Form the past 24 months of your payment self-employment tax payments which may 1040-SS about whether you engaged in a history, access online payment options, be deferred. Also, Schedule H (Form transaction involving virtual currency in and create or modify an online payment 1040) has been modified to account for 2020. See Virtual Currency under Specific agreement. You also can access your tax the deferral discussed above. Instructions, later. records online. Report the total payment amount you Schedule LEP (Form 1040). defer on Part I, line 11. For more Individual taxpayer identification num- Schedule LEP is a new form that allows ber (ITIN) renewal. You may need to information, see the instructions for Part I, taxpayers to request a preference to lines 4 and 11, and Part VII. renew your ITIN. For more information, receive written communications from the see the Instructions for Form W-7, Credits for sick and family leave for IRS in Spanish and other languages. If a Application for IRS Individual Taxpayer certain household employees. The language preference is requested, attach Identification Number. Families First Coronavirus Relief Act the Schedule LEP (Form 1040) to your (FFCRA)), as amended by the Form 1040-SS when you file it. For more Additional child tax credit (ACTC). If COVID-related Tax Relief Act of 2020, information, including what languages are you don't have an SSN or ITIN issued on required certain businesses to provide available, get Schedule LEP at IRS.gov. or before the due date of your 2020 Form paid leave to workers who are unable to 1040-SS (including extensions), you can't Identity Protection PIN for spouse. claim the ACTC on an original or amended work or telework due to circumstances Beginning in 2020, spouses must enter an related to COVID-19, and offsets the costs Form 1040-SS. Also, your qualifying child identity protection PIN on the Form must have an SSN valid for employment of providing the required leave with 1040-SS if one has been received from refundable tax credits against employment issued prior to the due date of your 2020 the IRS. Entry spaces for the identity Form 1040-SS (including extensions). tax. Form 1040-SS filers who report protection PIN have been added to the See Taxpayer identification number household employment taxes from right of the spouse's signature block. For requirements under Part II—Bona Fide Schedule H (Form 1040) on Form more information, see Identity Protection Residents of Puerto Rico Claiming 1040-SS may be eligible to claim a credit PIN, later. on Part I, line 12, to cover the costs of Additional Child Tax Credit, later.

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Refunds for returns that claim the How To Get Tax Help Who Must Pay SE Tax ACTC. The IRS expects the earliest If you have questions about a tax issue, ACTC related refunds to be available in need help preparing your tax return, or Self-Employed Persons taxpayer bank accounts or debit cards want to download free publications, forms, You must pay SE tax if you had net starting mid-February 2021, if these or instructions, see How To Get Tax Help earnings of $400 or more as a taxpayers chose direct deposit and there at the end of the instructions. You can find self-employed person. If you are in are no other issues with their tax return. additional resources to help you right business (farm or nonfarm) for yourself, For more information see IRS.gov/ away at IRS.gov. you are self-employed. individuals/refund-timing. This applies to You also must pay SE tax on your the entire refund, not just the portion Who Must File share of certain partnership income and associated with the ACTC. For more You must file Form 1040-SS if you meet all your guaranteed payments. See information, on the status of your refund, three requirements below. Partnership Income or Loss in the see IRS.gov/refunds. 1. You, or your spouse if filing a joint instructions for Part V, later. Electronic filing. You can e-file Form return, had net earnings from Church Employees 1040-SS. For general information about self-employment (from other than church electronic filing, visit IRS.gov/efile. employee income) of $400 or more (or you If you had church employee income of $108.28 or more, you must pay SE tax on Direct Pay. The best way to pay your had church employee income of $108.28 that income. Church employee income is taxes is with IRS Direct Pay. It's the safe, or more—see Church Employees, later). wages you received as an employee easy, and free way to pay from your However, see Exceptions, later. (other than as a minister or member of a checking or savings account in one online 2. You do not have to file Form 1040 religious order) of a church or qualified session. Go to IRS Direct Pay on IRS.gov. with the United States. church-controlled organization that has a Taxpayer Advocate Service (TAS). 3. You are a bona fide resident of: certificate in effect electing exemption TAS is an independent organization within a. Guam, from employer social security and the IRS that helps taxpayers and protects Medicare taxes. b. American Samoa, taxpayer rights. The telephone numbers If your only income subject to for the local advocate in the territories are: c. The USVI, self-employment tax is church employee • American Samoa, the CNMI, and d. The CNMI, or income, skip lines 1a through 4b in Part V. Guam: 808-566-2950 (in Hawaii); e. Puerto Rico (you can file either Enter “-0-” on line 4c and go to line 5a. • Puerto Rico, and USVI: 787-522-8600 Form 1040-PR (in Spanish) or Form for Spanish, and 787-522-8601 for English 1040-SS). Ministers and Members of (in Puerto Rico). Religious Orders Even if you have a loss or little For more information, see The In most cases, you must pay SE tax on Taxpayer Advocate Service (TAS) Is Here TIP income from self-employment, it may benefit you to file Form salaries and other income for services you To Help You under Additional Information, performed as a minister, a member of a later. 1040-SS and use either "optional method" in Part VI. See Part VI—Optional Methods religious order who has not taken a vow of To Figure Net Earnings, later. poverty, or a Christian Science Purpose of Form practitioner. But if you filed Form 4361 and This form is for residents of the U.S. Virgin Exceptions. If (2) and (3) under Who received IRS approval, you will be exempt Islands (USVI), Guam, American Samoa, Must File, earlier, apply, though (1) does from paying SE tax on those net earnings. the Commonwealth of the Northern not apply, you must file Form 1040-SS (or If you had no other income subject to SE Mariana Islands (CNMI), and the Form 1040-PR if you are a resident of tax and do not owe any of the taxes listed Commonwealth of Puerto Rico (Puerto Puerto Rico) to: earlier under Who Must File, you aren't Rico) who are not required to file a U.S. • Report and pay household employment required to file Form 1040-SS. However, if income tax return but who have taxes; you had other earnings of $400 or more self-employment income or are eligible to • Report and pay employee social subject to SE tax, see Part V, line A. claim certain credits. Residents of Puerto security and Medicare tax on: (a) If you have ever filed Form 2031 Rico may file Form 1040-PR in place of unreported tips, (b) wages from an Form 1040-SS. ! to elect social security coverage employer with no social security or CAUTION on your earnings as a minister, One purpose of the form is to report net Medicare tax withheld, (c) uncollected you cannot revoke that election. earnings from self-employment to the social security and Medicare tax on tips or United States and, if necessary, pay SE group-term life insurance (see the If you must pay SE tax, include this tax on that income. The Social Security instructions for Part I; Line 6, later); income in Part IV, line 1. But do not report Administration (SSA) uses this information • Report and pay the Additional Medicare it in Part V, line 5a; it isn't considered to figure your benefits under the social Tax (see the instructions for Part I, Line 5, church employee income. security program. SE tax applies no matter later); how old you are and even if you already • Claim excess social security tax Also include in Part IV, line 1: are receiving social security or Medicare withheld; • The rental value of a home or allowance benefits. • Claim the ACTC; and for a home furnished to you (including • Claim the health coverage tax credit or payments for utilities), and See Who Must File, later, for additional reconcile advance payments of the health • The value of meals and lodging uses of this form. coverage tax credit made for you, your provided to you, your spouse, and your dependents for your employer's You also may be required to file an spouse, or a dependent (bona fide convenience. income tax return with the government of residents of Puerto Rico only). Guam, American Samoa, the USVI, the However, do not include in Part IV, CNMI, or Puerto Rico. See Pub. 570, and line 1: contact your local territory tax office for • Retirement benefits you received from more information. a church plan after retirement, or

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• The rental value of or allowance for a agreements, in most cases, you must pay or nonfarm) and share in the profits and home furnished to you (including social security and Medicare taxes or losses, you are partners in a partnership, payments for utilities) after retirement. foreign health insurance only to the whether or not you have a formal If you were an ordained minister, a country you live in. partnership agreement. Do not use Part III member of a religious order who has not If you have questions about or Part IV. Instead, file the appropriate taken a vow of poverty, or a Christian international social security agreements partnership return. Science practitioner, and were employed visit the SSA International Programs Exception—Qualified joint venture by a church (congregation) for a salary, do website at SSA.gov/international/ (QJV). not include that income in Form 1040-SS, totalization_agreements.html. This If you and your spouse materially Part IV. Instead, figure your SE tax by website has general information about participate (see Material participation in completing Part V, including on line 2 this international social security agreements, the 2020 Instructions for Schedule C income and any rental (parsonage) including information about the coverage (Form 1040)) as the only members of a allowance or the value of meals and and social security taxation rules of the jointly owned and operated business, and lodging provided to you. On the same line, agreements. you file a joint Form 1040-SS for the tax subtract the allowable amount of any Even if you don’t have to pay SE year, you can make a joint election to be unreimbursed business expenses you tax because of a social security taxed as a QJV instead of a partnership. incurred as a church employee. Attach an ! CAUTION agreement, you may still have to To make this election, you must divide all explanation. file a tax return with the Internal Revenue items of income, gain, loss, deduction, For details, see Pub. 517. Service. and credit attributable to the business between you and your spouse in Members of Recognized Chapter 11 Bankruptcy Cases accordance with your respective interests Religious Sects in the venture. Each of you must file a While you are a debtor in a Chapter 11 separate Part III or Part IV, as well as a If you have conscientious objections to bankruptcy case, your net profit or loss separate Part V. On each line of your social security insurance because of your from self-employment will be included on separate Part III or Part IV, you must enter membership in and belief in the teachings the income tax return (Form 1041) of the your share of the applicable income, of a religious sect recognized as being in bankruptcy estate. However, you are deduction, or loss. For complete existence at all times since December 31, responsible for paying self-employment information on this election, see the 2020 1950, and which has provided a tax on your net earnings from Instructions for Schedule E (Form 1040). reasonable level of living for its dependent self-employment; not the bankruptcy members, you can request exemption estate. For more information on QJVs, go to from SE tax by filing Form 4029. If you IRS.gov and enter “qualified joint venture” filed Form 4029 and have received IRS Enter on the dotted line next to line 3 of in the search box. Form 1040-SS, Part V, “Chap. 11 approval, don't file Form 1040-SS. See Rental real estate business. If you bankruptcy income” and the amount of Pub. 517 for details. and your spouse make the QJV election your net profit or (loss). Combine that for your rental real estate business, in Employees of Foreign amount with the total of lines 1a, 1b, and 2 most cases the income isn't subject to SE Governments or International (if any) and enter the result on line 3. tax (for an exception, see item 3 under Organizations For other reporting requirements, see Other Income and Losses Included in Net You must pay SE tax on income you the Instructions for Form 1040. Earnings From Self-Employment in the earned as a U.S. citizen or a resident of instructions for Part V, later). Puerto Rico employed by a foreign More Than One Business If the QJV election is made for a farm government (or, in certain cases, by a If you were a farmer and had at least one rental business that isn't included in wholly owned instrumentality of a foreign other business or you had two or more self-employment, the income isn't subject government or an international nonfarm businesses, your net earnings to SE tax. Don’t include the income on organization under the International from self-employment are the combined Form 1040-SS. Depending on the source Organizations Immunities Act) for services net earnings from all of your businesses. If of the income (possession, U.S. source, or performed in the United States, Puerto you had a loss in one business, it reduces other foreign source), you may need to file Rico, Guam, American Samoa, the USVI, the income from another. Complete and other tax forms. See Pub. 570 and Form or the CNMI. Report income from this file only one Form 1040-SS for any 1 year. 4835, for more information. employment on Part IV, line 1. Enter the Attach a separate Part III or Part IV for net amount from Part IV, line 27, on Part V, Community property. If you and your each trade or business, and combine the line 2. If you performed services spouse wholly own an unincorporated net earnings in a single Part V. elsewhere as an employee of a foreign business as community property under the government or an international Joint returns. If both you and your community property laws of a state, organization, those earnings are exempt spouse have self-employment income foreign country, or U.S. possession, the from SE tax. from separate farm or nonfarm income and deductions are reported businesses, each of you must complete based on the following. Commonwealth or Territory and file a separate Part III or Part IV. Be • If only one spouse participates in the Residents Living Abroad sure to enter at the top of each Part III or business, all of the income from that business is the self-employment earnings In most cases, if you are a bona fide Part IV the name and SSN of the spouse of the spouse who carried on the resident of Guam, American Samoa, the who owns the business. Each of you also business. USVI, the CNMI, or Puerto Rico living must complete a separate Part V. Attach If both spouses participate, the income outside the territories or United States, these pages to a single Form 1040-SS. • and deductions are allocated to the you must still pay any applicable SE tax. Business Owned and spouses based on their distributive Exception. The United States has social shares. security agreements with many countries Operated by Spouses • If either or both you and your spouse to eliminate dual taxes under two social If you and your spouse jointly own and are partners in a partnership, see security systems. Under these operate an unincorporated business (farm

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Partnership Income or Loss in the on any unpaid tax will be charged from the Name and SSN instructions for Part V, later. original due date of the return. To ensure proper credit to your social If you and your spouse elected to treat • To get this automatic extension, you security account, enter your name and the business as a QJV, see must file Form 1040-SS by the extended SSN, and your spouse's if filing a joint Exception—Qualified joint venture (QJV), due date (June 15, 2021, for calendar year return, exactly as shown on your social earlier. taxpayers) and attach a statement security card. If you do not have an SSN, explaining that on the regular due date of get Form SS-5, Application for a Social Where To File your return you were a bona fide resident Security Card, from an SSA district office If you are enclosing a payment, send your of American Samoa, the CNMI, Guam, or or online at SSA.gov/forms/ss-5.pdf. Form 1040-SS to: the USVI. If you are not eligible for an SSN, you Internal Revenue Service Additional 4-month extension. If you must apply for an ITIN. For more P. O. Box 1303 can't file your return within the automatic information on ITINs, go to IRS.gov/ITIN. Charlotte, NC 28201-1303 2-month extension period, in most cases Also, see Form W-7 and its instructions. you can get an additional 4 months to file your return, for a total of 6 months. File If you aren't enclosing a payment, send Virtual Currency Form 4868 by the extended due date your Form 1040-SS to: Virtual currency is a digital representation allowed by the 2-month extension (June of value, other than a representation of the 15, 2021, for calendar year taxpayers). Department of the Treasury U.S. dollar or a foreign currency (“real Follow the instructions for completing Internal Revenue Service currency”), that functions as a unit of Form 4868, and be sure to check the box Austin, TX 73301-0215 account, a store of value, or a medium of on line 8. exchange. Some virtual currencies are When To File Unlike the original 2-month extension, convertible, which means that they have the additional 4 months of time to file is an equivalent value in real currency or act If you file on a calendar year basis, file by not an extension of time to pay. You must as a substitute for real currency. The IRS April 15, 2021. make an accurate estimate of your tax uses the term “virtual currency” to based on the information available to you. If you file on a fiscal year basis, file by describe the various types of convertible If you find you can't pay the full amount the 15th day of the 4th month after the virtual currency that are used as a medium due with Form 4868, you can still get the close of your fiscal year. of exchange, such as digital currency and extension. You will owe interest on the cryptocurrency. Regardless of the label Extension of Time To File unpaid amount from the original due date applied, if a particular asset has the If you can't file Form 1040-SS by the due of the return. characteristics of virtual currency, it will be date, you can get an extension of time to Where to file extension requests. If you treated as virtual currency for Federal file the form. In some cases, you can get are enclosing a payment, send Form 4868 income tax purposes. an extension of time to file and pay any tax with your payment to: If, in 2020, you engaged in any due. transaction involving virtual currency, Internal Revenue Service Bona fide residents of Puerto Rico. check the “Yes” box next to the question P.O. Box 1302 You can apply for an automatic 6-month on virtual currency on page 1 of Form Charlotte, NC 28201-1302 extension of time to file Form 1040-SS 1040-SS. A transaction involving virtual (until October 15, 2021, for calendar year currency includes, but is not limited to: taxpayers). To get this automatic If you aren't enclosing a payment, send • The receipt or transfer of virtual extension, you must file Form 4868, by the Form 4868 to: currency for free (without providing any regular due date of your return (April 15, consideration), including from an airdrop Department of the Treasury 2021, for calendar year taxpayers). You or hard fork; Internal Revenue Service can file Form 4868 either by paper or • An exchange of virtual currency for Austin, TX 73301-0215 electronically through IRS e-file. For goods or services; details, see the instructions on Form 4868. • A sale of virtual currency; Automatic 60-day extension. Certain • An exchange of virtual currency for This 6-month extension to file taxpayers affected by federally declared other property, including for another virtual does not extend the time to pay ! disasters may be eligible for an automatic currency; and CAUTION your tax. Any interest due on 60-day extension for filing returns, paying • A disposition of a financial interest in unpaid taxes is calculated from the original taxes, and performing other tasks required virtual currency. due date of the return. by the IRS. For more information, see Pub. A transaction involving virtual currency 547. Bona fide residents of American Sa- does not include the holding of virtual moa, the CNMI, Guam, or the USVI. currency in a wallet or account, or the You can apply for the automatic 6-month Specific Instructions transfer of virtual currency from one wallet extension described, earlier, or you can or account you own or control to another receive an automatic 2-month extension Fiscal Year Filers that you own or control. If you received and then apply for an additional 4-month any virtual currency as compensation for extension if you still need more time. If your tax year is a fiscal year, use the tax services, or disposed of any virtual rate and earnings base that apply at the currency that you held for sale to Automatic 2-month extension. You time the fiscal year begins. Don’t prorate customers in a trade or business, or are allowed an automatic 2-month the tax or earnings base for a fiscal year inventory or services, you should report extension to file your return and pay your that overlaps the date of a rate or earnings the income in Part III or Part IV of the Form tax if you are outside the United States base change. 1040-SS. and Puerto Rico on the day Form 1040-SS is due (April 15, 2021, for calendar year If you disposed of any virtual currency taxpayers). Although you have an that was held as a capital asset through a extension of time to pay your tax, interest sale, exchange, or transfer, report it in

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your territory income tax return. If you self-employment income, complete and Line 5 received any virtual currency as attach a separate Part V and Part VII, and Enter the total Additional Medicare Tax compensation for services, or disposed of if applicable, Part VI. If necessary, attach a from line 18 of Form 8959 on line 5. Attach any virtual currency that you held for sale separate Part III or Part IV for your Form 8959. See Form 8959 and the to customers in a trade or business, you spouse's farm or nonfarm business. Instructions for Form 8959 for more must report the income as you would information. report other income of the same type (for Joint and several tax liability. If you example, W-2 wages) in your territory file a joint return, both you and your Line 6 income tax return. spouse generally are responsible for the tax and any interest or penalties due on Include the following taxes in the line 6 total. For more information, go to IRS.gov/ the return. This means that if one spouse virtualcurrencyfaqs. doesn't pay the tax due, the other may Employee social security and Medi- have to. care tax on tips not reported to em- Part I—Total Tax and However, you may qualify for relief ployer. Complete Form 4137 if you from an existing tax liability on your joint received cash and charge tips of $20 or Credits return if: more in a calendar month and didn’t report Line 1 • There is an understatement of the all of those tips to your employer. On the amount of tax because your spouse dotted line next to line 6, enter “Tax on Check the filing status that applies to you. omitted income or claimed false Tips,” and the amount of tax due (from Single. Your filing status is single if: deductions or credits; Form 4137, line 13). Be sure to include 1. On the last day of the year, you’re • You are divorced, separated, or no this tax in the total for line 6. Attach to unmarried or legally separated from your longer living with your spouse; or Form 1040-SS the completed Form 4137. Given all the facts and circumstances, it spouse under a divorce or separate • Uncollected employee social security wouldn’t be fair to hold you liable for the maintenance decree, or and Medicare tax on tips. If you didn’t tax. 2. You meet all of the following have enough wages to cover the social conditions. File Form 8857 to request relief. Some security and Medicare tax due on tips you requests for relief may need to be filed a. You lived apart from your spouse reported to your employer, the amount of within two years of the date on which the tax due should be identified with codes A for the last 6 months of 2020. Temporary IRS first attempted to collect the tax from absences for special circumstances, such and B in box 12 of your Form W-2AS, you. For more information, W-2CM, W-2GU, or W-2VI; or entered in as business, medical care, school, or go to IRS.gov/InnocentSpouse. military service, count as time lived in the boxes 25 and 26 of your Form 499R-2/ home. Married filing separately. You can W-2PR. Include this tax in the total for choose this filing status if you were line 6. Enter the amount of this tax and b. You file a separate return from your “Uncollected Tax” on the dotted line next spouse. married at the end of 2020. This method may benefit you if you want to be to line 6. c. You paid over half the cost of responsible only for your own tax. Uncollected employee social security keeping up your home for 2020. Line 2 and Medicare tax on group-term life in- d. Your home was the main home of surance. If you had group-term life your child, adopted child, stepchild, or Enter the required information for each insurance through a former employer, you eligible foster child for more than half of child for which you are claiming the ACTC may have to pay social security and 2020. Temporary absences by you or the on Part II, line 3. See Qualifying for the Medicare tax on part of the cost of the life child for special circumstances, such as Credit under Part II—Bona Fide Residents insurance. The amount of tax due should school, vacation, business, medical care, of Puerto Rico Claiming Additional Child be identified with codes M and N in box 12 military service, or detention in a juvenile Tax Credit, later. of your Form W-2AS, W-2CM, W-2GU, or facility, count as time lived in the home. W-2VI. If you are a bona fide resident of You cannot take the credit for other Also, a child is considered to have lived Puerto Rico, contact your employer for this dependents on Form 1040-SS. Do not with you for more than half of 2020 if the amount. Include this tax in the total for enter a person who is a qualifying person child was born or died in 2020 and your line 6. Enter the amount of this tax and for purposes of the credit for other home was the child's home for more than “Uncollected Tax” on the dotted line next dependents on Part I, line 2. For more half of the time he or she was alive. to line 6. information on how the credit for other e. If you filed Form 1040, you could dependents may affect the calculation of Uncollected employee social security claim the child as your dependent or could your ACTC, see Specific Instructions for and Medicare tax on wages. If you’re claim the child except that the child's other the ACTC Worksheet, later. an employee who received wages from an parent can claim the child under the rules employer who didn’t withhold social for children of divorced or separated Line 4 security and Medicare tax from your parents (see Pub. 501). If either of the following applies, see wages, complete Form 8919 to figure your Schedule H (Form 1040), and its share of the unreported tax. Enter the Married filing jointly. You can choose instructions to find out if you owe amount of tax due (from Form 8919, this filing status if you were married at the household employment taxes. line 13) and “Uncollected Tax” on the end of 2020 and both you and your • You paid any one household employee dotted line next to line 6, and include this spouse agree to file a joint return. You also cash wages of $2,200 or more in 2020. tax in the total for line 6. Attach to Form can choose this filing status if your spouse • You paid total cash wages of $1,000 or 1040-SS the completed Form 8919. died in 2020 and you didn’t remarry in more in any calendar quarter of 2019 or 2020. 2020 to all household employees. Repayment of excess advance pay- If you choose to file a joint return, check ments of the health coverage tax cred- the box for married filing jointly and be Note: See the instructions for line 11 for it. If you received the benefit of advance sure to include your spouse's name and payments of social security taxes reported payments of the health coverage tax credit SSN on the lines provided below your on Schedule H (Form 1040) that may be for months you weren’t eligible, the name and SSN. If your spouse also had deferred. amount on line 5 of Form 8885 may be

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negative. On the dotted line next to line 6, too much social security tax may have Line 11 enter “HCTC” and the additional tax as a been withheld. You can take a credit on positive amount. Include this tax in the this line for the amount withheld in excess Deferral for certain Form 1040-SS or total for line 6. Attach the completed Form of $8,537.40. But if any one employer Schedule H (Form 1040) filers. If you 8885 to Form 1040-SS. withheld more than $8,537.40, you must entered amounts on Part I, line 3 or 4, you ask that employer to refund the excess to can defer some of the self-employment Line 7 you. You can't claim it on Form 1040-SS. and household employment tax payments Enter any estimated tax payments you Figure this amount separately for you and you may owe on your 2020 tax return and made for 2020 including any overpayment your spouse. You must attach Forms pay them later instead. However, you can’t from your 2019 return that you applied to W-2AS, W-2CM, W-2GU, W-2VI, or defer amounts that you have already paid. your 2020 estimated tax. If you or your 499R-2/W-2PR. See Pub. 505 for more If you qualify, the amount you may defer is spouse paid separate estimated tax but information. figured in the Deferral Worksheet for Filers are now filing a joint return, add the With Amounts on Line 3 or Line 4 of Form amounts you each paid and enter the total Line 10 1040-SS. on line 7. If you and your spouse paid joint If, during 2020, you were a bona fide The deferred amount is a deferral estimated tax but are now filing separate resident of Puerto Rico and an eligible ! of payments, not a deferral of your returns, you can divide the amount paid in trade adjustment assistance (TAA) CAUTION 2020 tax liability. Any amount you any way you choose as long as you both recipient, alternative TAA (ATAA) enter on line 10 of the worksheet must be agree. If you can't agree, you must divide recipient, reemployment trade adjustment paid by the due dates shown on lines 13 the payments in proportion to each assistance (RTAA) recipient, Pension and 14 of the worksheet to be treated as spouse's individual tax as shown on your Benefit Guaranty Corporation (PBGC) timely and avoid interest and penalties. separate returns for 2020. For an example payee, or qualifying family member, see Any deferred amount may be paid before of how to do this, see Pub. 505. the 2020 Form 8885, and its instructions the indicated due dates. Payments you to figure the amount of your credit, if any. Line 8 make are first applied against your payment due on December 31, 2021, and If you, or your spouse if filing a joint return, See chapter 1 of Pub. 570 for the bona fide residency rules. then applied against your payment due on had more than one employer for 2020, December 31, 2022. and total wages of more than $137,700,

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Deferral Worksheet for Filers With Amounts on Line 3 or Line 4 of Form 1040-SS Before you begin: Complete Schedule H (Form 1040), if applicable, Part VII, Form 1040-SS, and Form 1040-SS, Part I, lines 1 through 8.

1a. Enter the amount from Form 1040-SS, Part I, line 7 ...... 1a. 1b. Enter the amount from Form 1040-SS, Part I, line 8 ...... 1b. 1c. Enter any amount you paid with Form 4868 to request an extension of time to file...... 1c. 1d. Enter the amount from Form 1040-SS, Part I, line 9 ...... 1d. 1e. Enter the amount from Form 1040-SS, Part I, line 10 ...... 1e. 1f. If you had Additional Medicare Tax withheld, enter the amount shown on Form 8959, line 24 ...... 1f. 1g. Add lines 1a through 1f ...... 1g. 2. Enter the amount from Form 1040-SS, Part I, line 6 ...... 2. 3. Enter the amount(s) from line 8b of your Schedule(s) H (Form 1040) ...... 3. 4. Add lines 2 and 3 ...... 4. 5. Enter the amount from line 8d of your Schedule(s) H (Form 1040) ...... 5. 6. Enter the amount from Form 1040-SS, Part VII, line 9 ...... 6. 7. Add lines 5 and 6 ...... 7. 8. Subtract line 7 from line 4 ...... 8. 9. Subtract line 8 from line 1g. If zero or less, enter -0- ...... 9. 10. Subtract line 9 from line 7 ...... 10. You can defer payment up to the amount on line 10 until 12/31/2021 or 12/31/2022 by reporting the amount on line 10 above (or a smaller amount) on Form 1040-SS, Part I, line 11. See instructions. 11. Enter the amount you choose to report on Form 1040-SS, Part I, line 11 ...... 11. 12. Enter one-half of the amount on line 7 above ...... 12. 13. Enter the smaller of line 11 or line 12. You must pay this amount by 12/31/2022 ...... 13. 14. Subtract line 13 from line 11. You must pay this amount by 12/31/2021 ...... 14.

Line 12 Additional Medicare Tax withheld. If Lines 14a Through 14d Add lines 7 through 11. Enter the total on you had Additional Medicare Tax withheld If you want us to directly deposit the line 12. by your employer in 2020, include the amount shown on line 14a to your amount shown on Form 8959, line 24, in checking or savings account at a U.S. Refundable sick and family leave cred- the total for line 12. On the dotted line next bank or other U.S. financial institution its. If you have any household to line 12, enter “Form 8959” and show the (such as a mutual fund, brokerage firm, or employment taxes on line 4, include the amount. Attach Form 8959. See Form credit union): amount shown on Schedule H (Form 8959 and the Instructions for Form 8959 Check the box on line 14a and attach 1040), line 8e, in the total for line 12. On • for more information. Form 8888, if you want to split the direct the dotted line next to line 12, enter deposit of your refund into more than one “SLFLC” and show the amount. See Amount paid with request for exten- account or use all or part of your refund to Schedule H (Form 1040) and its sion of time to file. If you got an buy paper Series I savings bonds; or instructions for more information. automatic extension of time to file Form 1040-SS by filing Form 4868 or by making • Complete lines 14b through 14d if you Note. Do not enter any credits for sick a payment, enter the amount of the want your refund deposited to only one and family leave related to your payment or any amount you paid with account. self-employment income reported on Form 4868. If you paid by credit or debit If you don’t want your refund directly line 3 of Form 1040-SS. Those amounts card, don’t include on line 12 the deposited to your account, don’t check the will be reported on your territory tax return. convenience fee you were charged. On box on line 14a. Draw a line through the See the instructions for your territory tax the dotted line next to line 12, enter “Form boxes on lines 14b and 14d. We will send return for more information. 4868” and show the amount paid. you a check instead.

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The IRS isn't responsible for a lost TreasuryDirect® online account, check • Check or Money Order: Mail your ! refund if you enter the wrong the “Savings” box. payment to the address listed on the CAUTION account information. Check with notice or instructions. your financial institution to make sure your Line 14d • Cash: You may be able to pay your direct deposit will be accepted and to get taxes with cash at a participating retail the correct routing and account numbers. The account number can be up to 17 store. characters (both numbers and letters). To make a payment using a Debit Don’t request a deposit of your refund Include hyphens but omit spaces and or Credit card: Choose an to an account that isn't in your name (such special symbols. Enter the number from approved payment processor to as your tax preparer's own account). left to right and leave any unused boxes blank. Don’t include the check number. pay online, or by mobile device. A If you are asking to have a joint convenience fee is charged by these refund deposited to an individual If the direct deposit to your account(s) service providers. account and your financial is different from the amount you expected, institution won’t allow this, your direct you will receive an explanation in the mail To make a payment by phone, call deposit will be rejected back to the IRS about 2 weeks after your refund is one of our service providers. Each and a check will be sent instead. The IRS deposited. charges a fee that varies by isn’t responsible if a financial institution provider, card type, and payment amount. rejects a direct deposit. If you are asking to have a joint refund deposited to an individual PayUSAtax account and your financial Payment:844-729-8298 TreasuryDirect®. You can request a Live Operator: 855-508-0159 deposit of your refund (or part of it) to a institution won’t allow this, your direct deposit will be rejected back to the IRS Service: 844-825-8729 TreasuryDirect® online account to buy payusatax.com U.S. Treasury marketable securities and and a check will be sent instead. The IRS PAY1040 savings bonds. For more information, go isn’t responsible if a financial institution Payment: 888-729-1040 to Treasurydirect.gov. rejects a direct deposit. Service: 844-825-8729 Form 8888. You can have your refund Line 15 www.pay1040.com directly deposited into more than one Enter on line 15 the amount, if any, of the ACI Payments, Inc. account or use it to buy up to $5,000 in overpayment on line 13 you want applied Payment: 800-272-9829 paper Series I savings bonds. You don’t to your 2021 estimated tax. The election to Live Operator: 877-754-4420 need a TreasuryDirect® account to do apply part or all of the overpaid amount to Service: 877-754-4413 this. See the Instructions for Form 8888 for your 2021 estimated tax can't be changed fed.acipayonline.com more details. later. Using direct deposit. The fastest way to Amount You Owe Notice to taxpayers presenting receive a tax refund is to combine direct checks. When you provide a check as deposit and IRS e-file. Direct deposit To avoid interest and penalties, payment, you authorize us either to use securely and electronically transfers your TIP pay your taxes in full by April 15, information from your check to make a refund directly into your financial account. 2021. You don’t have to pay if one-time electronic fund transfer from your Eight in 10 taxpayers use direct deposit to line 16 is under $1. account or to process the payment as a receive their refund. The IRS issues more check transaction. When we use than 90% of refunds in less than 21 days. Don’t include any estimated tax payment information from your check to make an for 2021 in this payment. Instead, make electronic fund transfer, funds may be Line 14b the estimated tax payment separately. withdrawn from your account as soon as the same day we receive your payment, The routing number for your financial Line 16—Amount You Owe and you will not receive your check back institution must be nine digits. The first two from your financial institution. digits must be 01 through 12 or 21 through Making a tax payment. The IRS uses 32. Otherwise, the direct deposit will be the latest encryption technology to ensure What if I can’t pay now? Go to IRS.gov/ rejected and a check sent instead. your electronic payments are safe and Payments for more information about your secure. You can make electronic options. Ask your financial institution for the payments online, by phone, and from a • Apply for an online payment agreement correct routing number to enter on line 14b mobile device using the IRS2Go app. (IRS.gov/OPA) to meet your tax obligation if: Paying electronically is quick, easy, and in monthly installments if you can’t pay • The routing number on a deposit slip is faster than mailing in a check or money your taxes in full today. Once you different from the routing number on your order. Go to IRS.gov/Payments to make a complete the online process, you will checks, payment using any of the following receive immediate notification of whether • Your deposit is to a savings account options. your agreement has been approved. that doesn't allow you to write checks, or • IRS Direct Pay: Pay your individual tax • Use the Offer in Compromise Pre- • Your checks state they are payable bill or estimated tax payment directly from Qualifier (IRS.gov/OIC) to see if you can through a financial institution different from your checking or savings account at no settle your tax debt for less than the full the one at which you have your checking cost to you. amount you owe. account. Electronic Funds Withdrawal: Offered • Extension of time to pay. If paying the only when filing your federal taxes using tax when it is due would cause you an tax return preparation software or through Line 14c undue hardship, you can ask for an a tax professional. extension of time to pay by filing Form Check the appropriate box for the type of Electronic Federal Tax Payment • 1127 by April 15, 2021. In most cases, an account. Don’t check more than one box. System: Best option for businesses. extension won't be granted for more than You must check the correct box to ensure Enrollment is required. your deposit is accepted. For a 6 months. You will be charged interest on the tax not paid by April 15, 2021. You

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must pay the tax before the extension runs descendant of any of them (for example, IRS issues you an ITIN as a result of the out. Penalties and interest will be imposed your grandchild, niece, or nephew). A application, the IRS will consider your ITIN until taxes are paid in full. To get Form foster child is any child placed with you by as issued on or before the due date of 1127, and the most up-to-date an authorized placement agency or by a your return. information, see Form-1127. judgment, decree, or other order of any court of competent jurisdiction. Line 1 Understanding an IRS notice or letter. For purposes of figuring the ACTC, you Go to IRS.gov/Notices to find additional Note. Your adopted child is always treated as your own child. A child lawfully must report all of your income derived information about responding to an IRS from sources within Puerto Rico that is notice or letter. placed for legal adoption is treated the same as an adopted child. excluded from U.S. tax because you were a bona fide resident of Puerto Rico. Part II—Bona Fide 2. Was under 17 at the end of 2020. Residents of Puerto Rico 3. Was younger than you (or your This includes items such as wages, spouse, if filing jointly) or was permanently interest, dividends, taxable pensions and Claiming Additional Child and totally disabled (see Age Test in Pub. annuities, and taxable social security Tax Credit 501). benefits. Also include any profit or (loss) from Part III, line 36, and Part IV, line 27. If you were a bona fide resident of Puerto 4. Didn’t provide over half of his or her For more information on these and other Rico for the tax year and you qualify to own support for 2020. types of income to include on line 1, see claim the ACTC, you must list each 5. Lived with you for more than half of the Form 1040 instructions. See Pub. 570, qualifying child (defined later) in Part I, 2020. If the child didn’t live with you for the for the rules to use in determining your line 2. Also complete Part II and the required time, see Residency Test in Pub. Puerto Rico source income. Additional Child Tax Credit Worksheet 501. Part II, Line 3, later, to figure the amount of Line 2 your credit. 6. Isn’t filing a joint return for 2020 or is filing a joint return for 2020 only to claim Enter the amount of your 2020 withheld Bona fide residents of American a refund of estimated or withheld taxes. social security, Medicare, and Additional TIP Samoa, the CNMI, Guam, or the See examples under Joint Return Test (To Medicare taxes from Puerto Rico Form(s) USVI may be able to claim the Be a Qualifying Child) in Pub. 501. 499R-2/W-2PR, boxes 21 and 23. If ACTC on their territory income tax return. married filing jointly, include your spouse’s Contact your territory tax agency for 7. Was a U.S. citizen, U.S. national, or amounts with yours. details. For more information, see Pub. a U.S. resident alien. For information about Form 499R-2/ 570. Note. If you are a U.S. citizen or U.S. W-2PR, go to the Departamento de national and your adopted child lived with Hacienda website at If you take the ACTC even though you you all year as a member of your Hacienda.gobierno.pr/. aren't eligible and it is determined that household, that child meets an exception your error is due to reckless or intentional and may be a qualifying child although the Line 3 disregard of the ACTC rules, you won't be child is a nonresident alien. See Pub. 570 Use the Additional Child Tax Credit allowed to take the child tax credit, credit for more information. Worksheet—Part II, Line 3 to figure your for other dependents, or the ACTC for 2 ACTC. Enter the amount from line 19 of years even if you are otherwise eligible to Information about your qualifying the worksheet on Part II, line 3. do so. If you take the ACTC even though child. In Part I, line 2, enter each you aren’t eligible and it is later qualifying child's name, SSN, and determined that you fraudulently took the relationship to you. If you have more than Specific Instructions for the ACTC credit, you won't be allowed to take the six qualifying children, attach a statement Worksheet child tax credit, the credit for other to Form 1040-SS with the required The ACTC may be limited if your income dependents, or the ACTC for 10 years. information. If the child meets the derived from sources within Puerto Rico conditions to be a qualifying child of any Qualifying for the Credit exceeds the amounts shown on line 4 of other person (other than your spouse if the ACTC Worksheet. Calculate the child You may be able to claim the ACTC for filing jointly) for 2020, see Qualifying Child tax credit (CTC) on line 7 and the credit for 2020 if all of the following apply. of More Than One Person in Pub. 501. other dependents on line 8 as part of • You were a bona fide resident of Puerto Taxpayer identification number re- figuring the limitation, if any, of your ACTC Rico (see Pub. 570). quirements. Each qualifying child must even though you cannot take the CTC or • Social security and Medicare taxes have the required SSN. If you have a credit for other dependents on Form were withheld from your wages or you qualifying child who doesn’t have the 1040-SS. paid SE tax. required SSN, you can't use the child to • Neither you nor your spouse, if filing a Line 7. Multiply the number of qualifying claim the ACTC on either your original or joint return, can be claimed as a children entered on line 2 of the worksheet an amended 2020 return. The required dependent on someone else's U.S. by $2,000 and enter the result on line 7. If SSN is one that is valid for employment income tax return. you have a child who is 17 or older that and that’s issued before the due date of • You had three or more qualifying was not reported on line 2, you may be your 2020 return (including extensions). children (defined later). able to include that child in the calculation You must have a taxpayer identification of line 8, discussed next. You must have three or more number by the due date of your return. If ! qualifying children to claim the you don’t have an SSN or ITIN issued on Line 8. Multiply the number of other CAUTION ACTC. or before the due date of your 2020 return dependents who meet additional criteria (including extensions), you can’t claim the (defined later), including children who are Qualifying child. A qualifying child for ACTC on either your original or an 17 or older, by $500 and enter the amount purposes of the ACTC is a child who: amended 2020 return. If you apply for an on line 8. 1. Is your son, daughter, stepchild, ITIN on or before the due date of your If you include dependents on line 8 of foster child, brother, sister, stepbrother, 2020 return (including extensions) and the the worksheet, you must attach a stepsister, half brother, half sister, or a statement to your Form 1040-SS, which

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provides the following information for each most cases, you deduct your expenses gains from the forced sales. For more person included on line 8 who is a when you pay them. information, see Notice 2020-74, 2020-41 qualifying person for purposes of the I.R.B. 935 at www.irs.gov/irb/ Accrual method. Include your income in credit for other dependents. 2020-41_IRB#NOT-2020-74 and Pub225. the year you earned it. It doesn't matter First and last name. Find information on the most recent tax • when you get it. Deduct your expenses Tax identification number (SSN, ITIN, or relief provisions for taxpayers affected by • when you incur them. adoption taxpayer identification number disaster situations at IRS.gov/newsroom/ (ATIN)). tax-relief-in-disaster-situations. • Relationship to the person(s) filing Accounting Methods for Small Form 1040-SS. Business Taxpayers Line 12 If you claim any car or truck expenses Qualifying person for the credit for If you are a small business taxpayer (actual or the standard mileage rate), you other dependents. A qualifying person (defined later), you may be eligible to use must provide the information requested in for purposes of the credit for other the cash method of accounting. A farm Part V of Form 4562. Be sure to attach dependents is a person who: corporation, partnership with a C Form 4562 to your return. 1. Qualifies as a dependent for corporation as a partner, or other farm purposes of being claimed as a business, with the exception of a tax Line 23b dependent on a U.S. federal tax return. shelter, as defined in section 448(d)(3), that satisfies the requirements of a small Business interest expense deduction. See Pub. 501 for more information about Your business interest expense deduction claiming someone as a dependent. business taxpayer, generally can use the cash method of accounting. For more may be limited. The Instructions for Form 2. Cannot be reported on Part I, line 2, information, see chapters 2 and 3 in Pub. 8990, Limitation on Business Interest of Form 1040-SS, and lines 2 and 7 of the 225, and Pub. 538. Expense Under Section 163(j), explain ACTC worksheet. when a business interest expense 3. Was a U.S. citizen, U.S. national, or Small business taxpayer. For tax years deduction is limited, who is required to file a U.S. resident alien. For more beginning in 2020, you are a small Form 8990, and how certain businesses information, see Pub. 519. If the person is business taxpayer if you have average may elect out of the business interest your adopted child, see Adopted child annual gross receipts of $26 million or less expense limitation. For more information, next. for the 3 prior tax years under the gross see chapter 4, Farm Business Expenses receipts test. The gross receipts test in Pub. 225. Adopted child. Your adopted child is amount under section 448(c) is indexed always treated as your own child. An for inflation. For more information, see Line 34 adopted child includes a child lawfully Small business taxpayer in the List your other expenses and the amounts placed with you for legal adoption. Instructions for Schedule F (Form 1040). on lines 34a through 34e. If you can’t enter If you are a U.S. citizen or U.S. national See Pub. 538 for special rules if you had a all of the expenses on lines 34a through and your adopted child lived with you all short tax year or have not been in 34e, enter the first four expenses on lines year as a member of your household in existence for three years. 34a through 34d. On line 34e, enter “Other” and the total of the expenses not 2020, that child meets requirement 3, Inventory. For tax years beginning in already included on lines 34a through 34d. under Qualifying person for the credit for 2020, if a small business taxpayer has $26 other dependents, earlier. million in gross receipts (or less), it is not Business meals. Enter your total Taxpayer identification number required to account for inventories under deductible business meals. This includes requirements for the credit for other section 471(a), but can use a method of expenses for meals while traveling away dependents. In addition to being a accounting for inventories that either (1) from home for business. For more qualifying person for the credit for other treats the inventories as non-incidental information about which expenses are dependents, the person must have an materials and supplies, or (2) conforms to deductible meal expenses and which are SSN, ITIN, or ATIN issued on or before their financial accounting treatment of nondeductible entertainment expenses, the due date of your 2020 Form 1040-SS inventories or their books and records. see Pub. 463. (including extensions). If the person has Small business taxpayers are exempt not been issued an SSN, ITIN, or ATIN by from the requirement to capitalize costs Part IV—Profit or Loss that date, do not include the person on under section 263A. For more information, From Business (Sole line 8. see Capitalizing costs to property produced and property acquired for resale Proprietorship) Part III—Profit or Loss in the Instructions for Schedule F (Form For assistance with Part IV (Profit or Loss 1040). Also, see Pub. 538. From Business (Sole Proprietorship)), see From Farming the 2020 Instructions for Schedule C For assistance with Part III (Profit or Loss Section A or C—Sales of (Form 1040), Profit or Loss From From Farming), see the 2020 Instructions Livestock Business, and Pub. 334. for Schedule F (Form 1040), and Pub. Form 4797 is used to report sales of 225. Accounting Methods for Small livestock held for draft, breeding, sport, or Business Taxpayers Accounting Methods dairy purposes, and is attached to Form 1040. This income is taxable, but isn't If you are a small business taxpayer The accounting method you used to subject to SE tax. You should check to see (defined later), you may qualify to use the record your farm income determines if this additional amount of gross income cash method of accounting and be whether you complete Section A or C, in will require you to file Form 1040 instead exempt from capitalizing certain expenses addition to Section B. of Form 1040-SS. under section 263A. In addition, you may Cash method. Include in income both not be required to account for inventories the cash actually or constructively Note. Certain farmers and ranchers in the under section 471(a), and you may not be received and the fair market value of territories who were forced to sell livestock subject to the business interest expense goods or other property you received. In due to drought may have an additional limitation. For more information, see Pub. year to replace the livestock and defer 334 and Pub. 538.

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Additional Child Tax Credit Worksheet—Part II, Line 3 Keep for Your Records 1. Do you have three or more qualifying children under age 17 with the required SSN? No. Stop. You can't claim the credit. Yes. Go to line 2. 2. Number of qualifying children ______× $1,400. Enter the result ...... 2.

3. Enter the amount from Part II, line 1 ...... 3.

4. Enter the amount shown below for your filing status ...... 4. • Married filing jointly – $400,000 • All other filing statuses – $200,000 5. Is the amount on line 3 more than the amount on line 4? No. Leave line 5 blank. Enter the amount from line 2 on line 11, and go to line 12. Yes. Subtract line 4 from line 3. If the result isn't a multiple of $1,000, increase it to the next multiple of $1,000 (for example, increase $425 to $1,000, increase $1,025 to $2,000, etc.) ...... 5. 6. Multiply the amount on line 5 by 5% (.05). Enter the result ...... 6.

7. Number of qualifying children from line 2 x $2,000. Enter the result ...... 7. 8. Number of other dependents, including children who are not under age 17 ______x $500. Enter the result. See the Line 8 instructions ...... 8.

9. Add lines 7 and 8...... 9. 10. Is the amount on line 9 more than the amount on line 6? No. Stop. You can't claim the credit. Yes. Subtract line 6 from line 9. Enter the result ...... 10.

11. Enter the smaller of line 2 or line 10 ...... 11. 12. Enter the total, if any, of: • One-half of Part V, line 12, self-employment tax plus • One-half of the Additional Medicare Tax you paid on self-employment income (Form 8959, line 13) ...... 12. 13. Enter the total of any: • Amount from Part II, line 2, plus • Employee social security and Medicare tax on tips not reported to employer from Form 4137 and shown on the dotted line next to Part I, line 6, plus • Uncollected employee social security and Medicare tax on wages from Form 8919 shown on the dotted line next to Part I, line 6, plus • Uncollected employee social security tax and Medicare tax on tips and group-term life insurance (see instructions for Part I, line 6) shown on the dotted line next to Part I, line 6, plus • Amount on Form 8959, line 7 ...... 13.

14. Add lines 12 and 13. Enter the result ...... 14.

15. Enter the amount, if any, of Additional Medicare Tax withheld (Form 8959, line 22) ...... 15.

16. Subtract line 15 from line 14. Enter the result ...... 16.

17. Enter the amount, if any, from Part I, line 8 ...... 17. 18. Is the amount on line 16 more than the amount on line 17? No. Stop. You can't claim the credit. Yes. Subtract line 17 from line 16. Enter the result ...... 18. 19. Additional child tax credit. Enter the smaller of line 11 or line 18 here and on Form 1040-SS, Part II, line 3 ...... 19.

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Small business taxpayer. For tax years What Is Included in Net management for you. For details, see Pub. beginning in 2020, a small business Earnings From 225. taxpayer is a taxpayer that has average Self-Employment annual gross receipts of $26 million (or Other Income and Losses In most cases, net earnings include your less) for the three prior tax years and is not Included in Net Earnings a tax shelter as defined in section 448(d) net profit from a farm or nonfarm business. (3). The gross receipts test amount under If you were a partner in a partnership, see From Self-Employment section 448(c) is indexed for inflation. See the following instructions. 1. Rental income from a farm if, as Pub. 538 and Pub. 334, for taxpayers that landlord, you materially participated in the have had a short tax year or have not Partnership Income or Loss production or management of the been in existence for three years. production of farm products on the land. When figuring your total net earnings from This income is farm earnings. To self-employment, include your share of Lines 2a and 2g determine if you materially participated in partnership income or loss attributable to a You may not be required to account for farm management or production, don’t trade or business and any guaranteed inventories under section 471(a). For consider the activities of any agent who payments for services or the use of more information, see Pub. 334 and Pub. acted for you. The material participation capital. However, if you were a limited 538. tests for landlords are explained in Pub. partner, include only guaranteed 225. Line 7 payments for services you actually 2. Cash or a payment-in-kind from the If you claim any car or truck expenses rendered to or on behalf of the Department of Agriculture for participating (actual or the standard mileage rate), you partnership. in a land diversion program. must provide the information requested in Part V of Form 4562. Be sure to attach If you were a general partner, reduce 3. Payments for the use of rooms or Form 4562 to your return. lines 1a and 2 of Part V for any section other space when you also provided 179 expense deduction, oil or gas substantial services for the convenience of Line 14 depletion, and unreimbursed partnership your tenants. Examples are hotel rooms, Your business interest expense deduction expenses. Attach an explanation of these boarding houses, tourist camps or homes, may be limited. The instructions for Form deductions. parking lots, warehouses, and storage 8990 explain when a business interest garages. See Pub. 334 for more expense deduction is limited, who is If your partnership was engaged solely information. required to file Form 8990, and how in the operation of a group investment 4. Income from the retail sale of certain businesses may elect out of the program, earnings from the operation newspapers and magazines if you were business interest expense limitation. For aren't self-employment earnings for either age 18 or older and kept the profits. more information, see the 2020 the general or limited partners. 5. Income you receive as a direct Instructions for Schedule C (Form 1040), seller. Newspaper carriers or distributors and chapter 8, Business Expenses, in If a partner died and the partnership of any age are direct sellers if certain Pub. 334. continued, include in self-employment income the deceased partner's distributive conditions apply. See Pub. 334 for details. Line 22b share of the partnership's ordinary income 6. Amounts received by current or Enter your total deductible business or loss through the end of the month in former self-employed insurance agents meals. This includes expenses for meals which he or she died. See section 1402(f). and salespersons that are: while traveling away from home for a. Paid after retirement but figured as business. For more information about If you were married and both you and a percentage of commissions received which expenses are deductible meal your spouse were partners in a from the paying company before expenses and which are nondeductible partnership, each of you must report your retirement, net earnings from self-employment from entertainment expenses, see Pub. 463. b. Renewal commissions, or the partnership. Each of you must Line 25a complete a separate Part V. If only one of c. Deferred commissions paid after List your other expenses and the amounts you was a partner in a partnership, the retirement for sales made before on line 25a. If you can’t enter all of your spouse who was the partner must pay SE retirement. other expenses on the lines provided, tax on all of his or her share of partnership However, certain termination payments enter "Other" and the total of the expenses income. received by former insurance not already listed on line 25a on the last Community property. Your own salespersons aren't included in net line under line 25a. Combine the amounts distributive share of partnership income is earnings from self-employment (as reported on line 25a and enter the total on included in figuring your net earnings from explained in item 11 under Income and line 25b. self-employment. Unlike the division of Losses Not Included in Net Earnings From that income between spouses for figuring Self-Employment). Part V—Self-Employment income tax, no part of your share can be 7. Income of certain crew members of Tax included in figuring your spouse's net fishing vessels with crews of normally earnings from self-employment. fewer than 10 people. See Pub. 334 for If you are filing a joint return and details. ! both you and your spouse have CAUTION income subject to SE tax, you Share Farming 8. Fees as a state or local government must each complete a separate Part V. You are considered self-employed if you employee if you were paid only on a fee This includes those who made a joint produced crops or livestock on someone basis and the job wasn’t covered under a election to be taxed as a QJV. else's land for a share of the crops or federal-state social security coverage livestock produced (or a share of the agreement. proceeds from the sale of them). This applies even if you paid another person (an agent) to do the actual work or

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9. Interest received in the course of 6. Payments you receive from the line 1b. The amount of these payments is any trade or business, such as interest on Conservation Reserve Program (CRP) if included in Part III, line 6, and in notes or accounts receivable. you are receiving social security benefits information received from farm 10. Fees and other payments received for retirement or disability. Deduct these partnerships showing your distributive by you for services as a director of a payments on line 1b of Part V. share. corporation. 7. Dividends on shares of stock and Lines 4a Through 4c 11. Recapture amounts under sections interest on bonds, notes, etc., if you didn’t receive the income in the course of your If both lines 4a and 4c are less than $400 179 and 280F included in gross income and you have deducted CRP payments on because the business use of the property trade or business as a dealer in stocks or securities. line 1b, combine lines 1a and 2. dropped to 50% or less. Don’t include • If the total of lines 1a and 2 is $434 or amounts you recaptured on the disposition 8. Gain or loss from: more, complete Part V through line 4c. of property. See Form 4797. a. The sale or exchange of a capital Enter “-0-” in Part I, line 3, unless also you 12. Fees you received as a asset; have church employee income. If you also professional fiduciary. This also may apply b. Certain transactions in timber, coal, have church employee income, see to fees paid to you as a nonprofessional or domestic iron ore; or Church Employees, earlier. Also complete fiduciary if the fees relate to active lines 5a and 5b and the rest of Part V, as participation in the operation of the c. The sale, exchange, involuntary appropriate. estate's business or the management of conversion, or other disposition of • If the total of lines 1a and 2 is less than an estate that required extensive property unless the property is stock in $434, do not complete Part V unless you management activities over a long period trade or other property that would be choose to use an optional method to figure of time. includible in inventory, or held mainly for your SE tax or you have church employee sale to customers in the ordinary course of income. If you have church employee 13. Gain or loss from section 1256 the business. contracts or related property by an options income, see Church Employees, earlier. or commodities dealer in the normal 9. Net operating losses from other Also complete lines 5a and 5b and the rest course of dealing in or trading section years. of Part V, as appropriate. 1256 contracts. 10. The qualified business income Line 8b deduction under section 199A. If you received tips of $20 or more in any Income and Losses 11. Termination payments you month and didn’t report the full amount to Not Included in Net Earnings received as a former insurance your employer, you must file Form 4137 salesperson if all of the following From Self-Employment with Form 1040-SS (see instructions for conditions are met. 1. Salaries, fees, etc., subject to Part I, Line 6, earlier). Enter on line 8b the social security or Medicare tax that you a. The payment was received from an amount from Form 4137, line 10. received for performing services as an insurance company because of services employee, including services performed you performed as an insurance Line 8c as a public official (except as a fee basis salesperson for the company. If you are an employee who received government employee as discussed in b. The payment was received after wages from an employer who didn’t item 8 under Other Income and Losses termination of your agreement to perform withhold social security and Medicare tax, Included in Net Earnings From services for the company. you must file Form 8919 with Form 1040-SS (see instructions for Part I, Self-Employment, earlier). c. You didn’t perform any services for Line 5, earlier). Enter on line 8c the 2. Fees received for services the company after termination and before amount from Form 8919, line 10. performed as a notary public. However, if the end of the year in which you received you have other earnings of $400 or more the payment. Part VI—Optional Methods subject to SE tax, on the dotted line next d. You entered into a covenant not to to Part V, line 3, enter “Exempt—Notary” compete against the company for at least To Figure Net Earnings and the amount of your net profit as a a 1-year period beginning on the date of The optional methods may give you credit notary public included in line 2. Subtract termination. toward your social security coverage even that amount from the total of lines 1a, 1b, though you have a loss or a small amount and 2; and enter the result on line 3. e. The amount of the payment depended primarily on policies sold by or of income from self-employment. But the 3. Income you received as a retired credited to your account during the last optional methods may require you to pay partner under a written partnership plan year of the agreement, or the extent to SE tax when you would otherwise not be that provides lifelong periodic retirement which those policies remain in force for required to pay. payments if you had no other interest in some period after termination, or both. the partnership and did not perform If you’re filing a joint return and both services for it during the year. f. The amount of the payment did not you and your spouse choose to use an depend to any extent on length of service optional method to figure net earnings 4. Income from real estate rentals if or overall earnings from services from self-employment, you must each you didn’t receive the income in the performed for the company (regardless of complete and attach a separate Part VI. course of a trade or business as a real whether eligibility for the payment You can change the method after you estate dealer. Report this income in Part depended on length of service). IV if you and your spouse made an file your return. That is, you can change election to be taxed as a QJV. Line 1b from the regular to the optional method or from the optional to the regular method. 5. Income from farm rentals (including If you were receiving social security To do this, file a new Form 1040-SS. See rentals paid in crop shares) if, as landlord, retirement or social security disability the instructions under Corrected Returns, you did not materially participate in the benefits at the time you received your later. production, or management of the Conservation Reserve Program (CRP) production, of farm products on the land. payment(s), include the amount of your See Pub. 225 for details. taxable CRP payment(s) in the total on

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Using the optional methods may zero), or the amount in Part VI, line 3. But first paycheck in 2020, even if some of the TIP qualify bona fide residents of you can't report less than your actual net income was earned in 2019, and the end Puerto Rico to claim the ACTC or earnings from nonfarm self-employment. of your tax year will include your last give them a larger credit. Figure your share of gross income from paycheck in 2020. A reasonable method a nonfarm partnership in the same manner will accurately reflect when the church Farm Optional Method as a farm partnership. For details, see employee income was earned. In most You may use this method to figure your Farm Optional Method, earlier. cases, your church employee income will net earnings from farm self-employment if be divided into regular pay periods which your gross farm income was $8,460 or Using Both Optional Methods can be used to attribute income to the less, or your net farm profits were less If you have both farm and nonfarm periods described, earlier. than $6,107. Net farm profits are the total earnings, and can use both optional Line 9 of the amounts from Part III, line 36, and methods, you can report less than your The amount you figure on line 9 may not your distributive share from farm total actual net earnings from farm and be the amount of self-employments tax partnerships, minus the amount you would nonfarm self-employment, but you can't payments that you can elect to defer. You have entered in Part V, line 1b, had you report less than your actual net earnings will include this amount to figure the not used the optional method. from nonfarm self-employment alone. amount you can actually elect to defer on There is no limit on how many years If you use both methods to figure net Part I, line 11. See the instructions for Part you can use this method. earnings from self-employment, you can't I, line 11, for additional information about report more than $5,640 of net earnings figuring and reporting the actual amount of Under this method, report in Part VI, from self-employment. self-employment tax payment that you line 2, the smaller of: two-thirds of your may defer. gross farm income (not less than zero), or Part VII—Maximum $5,640. This method can increase or The amount you figure on line 9 is also decrease your net self-employment farm Deferral of used to figure the amount of deferred earnings. You can use this method even if Self-Employment Tax self-employment tax payments that you your farming business had a loss. must repay in 2021 and 2022. The Payments repayment amounts are split equally For a farm partnership, figure your Line 1 between 2021 and 2022; however, your share of gross income based on the maximum deferral amounts are used to Use any reasonable method to divide the partnership agreement. With guaranteed figure your equal repayment amounts, not net profit or (loss) you reported on Part V, payments, your share of the partnership's the amount you actually deferred. For line 3, between March 27, 2020, through gross income is your guaranteed example, if your maximum deferral of December 31, 2020 and the rest of the payments plus your share of the gross self-employment tax payments is $6,000, year. income after it is reduced by all but you only actually defer $4,000, your guaranteed payments made by the A reasonable method will accurately first repayment amount will be $1,000 and partnership. If you were a limited partner, reflect the time when income was earned your second repayment amount will be include only guaranteed payments for or accrued and deductible expenses were $3,000. services you actually rendered to or on paid or incurred, depending on your behalf of the partnership. method of accounting. In most cases, a Completing Your Return Nonfarm Optional Method proportional division of the amount reported on Part V, line 3, based upon the Sign Your Return You may be able to use this method to number of days in each period will be Form 1040-SS isn't considered a valid figure your net earnings from nonfarm considered reasonable. return unless you sign it in accordance self-employment if your net nonfarm with the requirements in these profits were less than $6,107, and also Line 3 instructions. If you are filing a joint return, less than 72.189% of your gross nonfarm Use any reasonable method to divide the your spouse must also sign. If your spouse income. Net nonfarm profits are the total optional method amounts you reported on can't sign the return, see Pub. 501. Be of the amounts from Part IV, line 27, and Part VI, line 2, and Part VI, line 4, between sure to date your return and enter your your distributive share from other than March 27, 2020, through December 31, occupation(s). If you have someone farm partnerships. 2020 and the rest of the year. prepare your return, you are still To use this method, you also must be A reasonable method will accurately responsible for the correctness of the regularly self-employed. You meet this reflect the time when income was earned return. If your return is signed by a requirement if your actual net earnings or accrued and deductible expenses were representative for you, you must have a from self-employment were $400 or more paid or incurred, depending on your power of attorney attached that in 2 of the 3 years preceding the year you method of accounting. In most cases, a specifically authorizes the representative use the nonfarm optional method. The net proportional division of the amounts to sign your return. To do this, you can use earnings of $400 or more could be from reported on Part VI, line 2, or Part VI, Form 2848. If you are filing a joint return as either farm or nonfarm earnings or both. line 4, based upon the number of days in a surviving spouse, see Death of a The net earnings include your distributive each period will be considered Taxpayer, later. share of partnership income or loss reasonable. Requirements for a Paper subject to SE tax. Line 5 Return Use of the nonfarm optional method Use any reasonable method to divide the You must handwrite your signature on from nonfarm self-employment is limited to church employee income you reported on your return if you file it on paper. Digital, 5 years. The 5 years don’t have to be Part V, line 5a, between March 27, 2020, electronic, or typed-font signatures are not consecutive. through December 31, 2020 and the rest valid signatures for Forms 1040-SS filed Under this method, report in Part VI, of the year. on paper. line 4, the smaller of: two-thirds of your In most cases, the beginning of your gross nonfarm income (not less than tax year will include income paid with your

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Requirements for an Electronic your PIN, last name, date of birth, and IP New IP PINs are generated every Return PIN, if applicable. If you're filing jointly, year. This year they will generally your electronic return must also include be sent out by mid-January 2021. To file your return electronically, you must your spouse's PIN, last name, date of Use this IP PIN on your 2020 return as well sign the return electronically using a birth, and IP PIN, if applicable in order to as any prior-year returns you file in 2021. personal identification number (PIN) and be considered validly signed. The providing the information described below. practitioner can provide you with details. Beginning in 2020, IP PIN spaces have If you are filing online using software, you been added for the spouse of the primary must use a Self-Select PIN. If you are filing Third Party Designee taxpayer. If you are filing a joint return and electronically using a tax practitioner, you If you want to allow your preparer, a friend, both taxpayers receive an IP PIN, both the can use a Self-Select PIN or a Practitioner family member, or any other person you primary taxpayer and the spouse must PIN. For 2020, if we issued you an identity choose to discuss your 2020 tax return enter an IP PIN on the Form 1040-SS. An protection personal identification number with the IRS, check the “Yes” box in the IP PIN for both taxpayers must be entered (IP PIN) (as described in more detail “Third Party Designee” area on page 1 of on Form 1040-SS if you are filing below), all six digits of your IP PIN must your return. Also, enter the designee's electronically. appear in the IP PIN spaces provided next name, phone number, and any five digits to the space for your occupation for your the designee chooses as his or her If you need more information or electronic signature to be complete. personal identification number (PIN). answers to frequently asked questions on Failure to include an issued IP PIN on the how to use the IP PIN, go to IRS.gov/ return will result in an invalid electronic If you check the “Yes” box, you (and Individuals/IPPIN. If you received an IP signature and a rejected return. If you are your spouse if filing a joint return) are PIN but misplaced it, you can try to filing a joint return and both taxpayers authorizing the IRS to call the designee to retrieve it online at IRS.gov/identity-theft- were issued an IP PIN, enter both IP PINs answer any questions that may arise fraud-scams/retrieve-your-ip-pin or call in the spaces provided. during the processing of your return. You 800-908-4490. also are authorizing the designee to: Self-Select PIN. The Self-Select PIN Understanding identity theft. Go to method allows you to create your own • Give the IRS any information that is IRS.gov//identity-theft-central for PIN. If you are married filing jointly, you missing from your return; information and videos. Call the IRS for information about the and your spouse will each need to create • processing of your return or the status of a PIN and enter these PINs as your your refund or payment(s); Paid Preparer Must Sign Your electronic signatures. • Receive copies of notices or transcripts Return A PIN is any combination of five digits related to your return, upon request; and Generally, anyone you pay to prepare your you choose except five zeros. If you use a • Respond to certain IRS notices about return must sign it and include their PIN, there is nothing to sign and nothing to math errors, offsets, and return Preparer Tax Identification Number (PTIN) mail—not even your Forms W-2. preparation. in the space provided. The preparer must Your electronic return is considered a give you a copy of the return for your validly signed return only when it includes You aren't authorizing the designee to records. Someone who prepares your your PIN, last name, date of birth, IP PIN, if receive any refund check, bind you to return but doesn't charge you shouldn’t applicable, and your adjusted gross anything (including any additional tax sign your return. income (AGI) from your originally filed liability), or otherwise represent you before 2019 federal income tax return, if the IRS. If you want to expand the If your paid preparer is self-employed, applicable. If you're filing jointly, your designee's authorization, see Pub. 947. then he or she should check the electronic return must also include your “self-employed” checkbox. spouse's PIN, last name, date of birth, IP The authorization will automatically end PIN, if applicable, and AGI, if applicable in no later than the due date (without regard order to be considered validly signed. to extensions) for filing your 2021 tax Additional Information return. This is April 15, 2022, for most Don’t use your AGI from an amended Corrected Returns return (Form 1040-X) or a math error people. If you wish to revoke the correction made by the IRS. AGI is the authorization before it ends, see Pub. 947. File a new Form 1040-SS to change a Form 1040-SS you already filed. If you amount shown on your 2019 Form 1040 or Daytime Phone Number 1040-SR, line 8b. If you don’t have your filed Form 1040-SS but should have filed 2019 income tax return, call the IRS at Providing your daytime phone number can Form 1040, file a corrected return on Form 800-908-9946 to get a free transcript of help speed the processing of your return. 1040. In either case, at the top of page 1 your return or visit IRS.gov/Transcript. (If If we have questions about items on your of the corrected return, enter you filed electronically last year, you, and return and you can answer our questions “CORRECTED” in dark bold letters your spouse if filing jointly, may use your over the phone, we may be able to followed by the date. In most cases, an prior year PIN to verify your identity continue processing your return without amended Form 1040-SS (or Form 1040, if instead of your prior year AGI. The prior mailing you a letter. If you are filing a joint applicable) must be filed within 3 years year PIN is the five-digit PIN you used to return, you can enter either your or your after the date on which the original return electronically sign your 2019 return.) spouse's daytime phone number. was filed or within 2 years after the tax was paid, whichever is later. You can't use the Self-Select PIN Identity Protection PIN ! method if you are a first-time filer For 2020, if you received an Identity Interest and Penalties CAUTION under age 16 at the end of 2020. Protection Personal Identification Number Do not figure the amount of any interest or (IP PIN) from the IRS, enter it in the IP PIN penalties you may owe. We will send you Practitioner PIN. The Practitioner PIN spaces provided next to your daytime a bill for any amount due. method allows you to authorize your tax phone number. You must correctly enter practitioner to enter or generate your PIN. all six numbers of your IP PIN. If you didn’t Interest Your electronic return is considered a receive an IP PIN, leave these spaces validly signed return only when it includes blank. We will charge you interest on taxes not paid by their due date, even if an

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extension of time to file is granted. We How To Get Tax Help questions on a number of tax law topics also will charge you interest on penalties. and provide answers. You can print the If you have questions about a tax issue, Interest is charged on the penalty from the entire interview and the final response for need help preparing your tax return, or due date of the return (including your records. want to download free publications, forms, extensions). Go to IRS.gov/Pub17 to get Pub. 17, or instructions, go to IRS.gov and find • Your Federal Income Tax for Individuals, resources that can help you right away. Penalties which features details on tax-saving Preparing and filing your tax return. opportunities, 2020 tax changes, and Late filing. If you don’t file your return by After receiving all your wage and earnings thousands of interactive links to help you the due date (including extensions), the statements (Form W-2, W-2G, 1099-R, find answers to your questions. View it penalty is usually 5% of the amount due 1099-MISC, 1099-NEC, etc.); online in HTML, as a PDF, or download it for each month or part of a month your unemployment compensation statements to your mobile device as an eBook return is late, unless you have a (by mail or in a digital format) or other reasonable explanation. If you do, attach a government payment statements (Form Coronavirus. Go to IRS.govCoronavirus statement to your return. The penalty can 1099-G); and interest, dividend, and for links to information on the impact of the be as much as 25% of the tax due. The retirement statements from banks and coronavirus, as well as tax relief available penalty is 15% per month, up to a investment firms (Forms 1099), you have for individuals and families, small and maximum of 75%, if the failure to file is several options to choose from to prepare large businesses, and tax-exempt fraudulent. If your return is more than 60 and file your tax return. You can prepare organizations. the tax return yourself, see if you qualify days late, the minimum penalty will be Tax reform. Tax reform legislation affects for free tax preparation, or hire a tax $435 or the amount of any tax you owe, individuals, businesses, and tax-exempt professional to prepare your return. whichever is smaller. and government entities. Go to IRS.gov/ Late payment of tax. If you pay your Using online tools to help prepare TaxReform for information and updates on taxes late, the penalty is usually 1/2 of 1% your return. Go to IRS.gov/Tools for the how this legislation affects your taxes. following. of the unpaid amount for each month or Employers can register to use Busi- The Earned Income Tax Credit part of a month the tax isn't paid. The • ness Services Online. The Social Assistant (IRS.gov/EITCAssistant) penalty can be as much as 25% of the Security Administration (SSA) offers determines if you’re eligible for the earned unpaid amount. It applies to any unpaid online service at SSA.gov/employer for income credit (EIC). tax on the return. This penalty is in fast, free, and secure online W-2 filing The Online EIN Application (IRS.gov/ addition to interest charges on late • options to CPAs, accountants, enrolled EIN) helps you get an employer payments. agents, and individuals who process Form identification number (EIN). W-2, Wage and Tax Statement, and Form Frivolous return. In addition to any other The Tax Withholding Estimator • W-2c, Corrected Wage and Tax penalties, the law imposes a penalty of (IRS.gov/W4app) makes it easier for Statement. $5,000 for filing a frivolous return. A everyone to pay the correct amount of tax frivolous return is one that doesn't contain during the year. The tool is a convenient, IRS social media. Go to IRS.gov/ information needed to figure the correct online way to check and tailor your SocialMedia to see the various social tax or shows a substantially incorrect tax withholding. It’s more user-friendly for media tools the IRS uses to share the because you take a frivolous position or taxpayers, including retirees and latest information on tax changes, scam desire to delay or interfere with the tax self-employed individuals. The features alerts, initiatives, products, and services. laws. This includes altering or striking out include the following. At the IRS, privacy and security are the preprinted language above the space • Easy to understand language. paramount. We use these tools to share where you sign. For a list of positions • The ability to switch between screens, public information with you. Don’t post identified as frivolous, see Notice correct previous entries, and skip screens your SSN or other confidential information 2010-33, at IRS.gov/irb/ that don’t apply. on social media sites. Always protect your 2010-17_IRB#NOT-2010-33. • Tips and links to help you determine if identity when using any social networking Other. Other penalties can be imposed, you qualify for tax credits and deductions. site. including those for negligence, substantial • A progress tracker. The following IRS YouTube channels understatement of tax, reportable • A self-employment tax feature. provide short, informative videos on transaction understatements, filing an • Automatic calculation of taxable social various tax-related topics in English, erroneous refund claim, and fraud. security benefits. Spanish, and ASL. Criminal penalties may be imposed for • The First Time Homebuyer Credit • Youtube.com/irsvideos. willful failure to file, tax evasion, or making Account Look-up ( IRS.gov/HomeBuyer) • Youtube.com/irsvideosmultilingua. a false statement. See Pub. 17 for details tool provides information on your • Youtube.com/irsvideosASL. on some of these penalties. repayments and account balance. • The Sales Tax Deduction Calculator Watching IRS videos. The IRS Video Access Your Online Account (IRS.gov/SalesTax) figures the amount portal (IRSVideos.gov) contains video and (Individual Taxpayers Only) you can claim if you itemize deductions on audio presentations for individuals, small businesses, and tax professionals. Go to IRS.gov/account to securely access Schedule A (Form 1040). information about your federal tax Getting answers to your tax Online tax information in other lan- account. questions. On IRS.gov, get guages. You can find information on • View the amount you owe, pay online or answers to your tax questions IRS.gov/MyLanguage if English isn’t your set up an online payment agreement. anytime, anywhere. native language. Access your tax records online. • Free interpreter service. Multilingual Review the past 24 months of your • Go to IRS.gov/Help for a variety of tools • assistance, provided by the IRS, is payment history. that will help you get answers to some of available at Taxpayer Assistance Centers Go to IRS.gov/secureaccess to review the common tax questions. • (TACs) and other IRS offices. the required identity authentication • Go to IRS.gov/ITA for the Interactive process. Tax Assistant, a tool that will ask you

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Over-the-phone interpreter service is identity theft, you can learn what steps you receive immediate notification of whether accessible in more than 350 languages. should take. your agreement has been approved. Get an Identity Protection PIN (IP PIN). Use the Offer in Compromise Pre- Getting tax forms and publications. • • IP PINs are six-digit numbers assigned to Qualifier to see if you can settle your tax Go to IRS.gov/Forms to view, download, eligible taxpayers to help prevent the debt for less than the full amount you owe. or print all of the forms and publications misuse of their SSNs on fraudulent federal For more information on the Offer in you may need. You also can download income tax returns. When you have an IP Compromise program, go to IRS.gov/OIC. and view popular tax publications and PIN, it prevents someone else from filing a instructions (including the 1040 Filing an amended return. You can now tax return with your SSN. To learn more, instructions) on mobile devices as an file Form 1040-X electronically with tax go to IRS.gov/IPPIN. eBook IRS.gov/eBooks. Or you can go to filing software to amend 2019 Forms 1040 IRS.gov/OrderForms to place an order Checking on the status of your refund. and 1040-SR. To do so, you must have and have forms mailed to you within 10 • Go to IRS.gov/Refunds. e-filed your original 2019 return. Amended business days. • The IRS can’t issue refunds before returns for all prior years must be mailed. mid-February 2021 for returns that See Tips for taxpayers who need to file an Access your online account (individual claimed the EIC or the additional child tax amended tax return and go to IRS.gov/ taxpayers only). Go to IRS.gov/Account credit (ACTC). This applies to the entire Form1040X for information and updates. to securely access information about your refund, not just the portion associated with federal tax account. Checking the status of your amended these credits View the amount you owe, pay online, return. Go to IRS.gov/WMAR to track the • Download the official IRS2Go app to or set up an online payment agreement. • status of Form 1040-X amended returns. your mobile device to check your refund Access your tax records online. Please note that it can take up to 3 weeks • status Review your payment history. from the date you filed your amended • Call the automated refund hotline at Go to IRS.gov/SecureAccess to review • return for it to show up in our system, and • 800-829-1954. the required identity authentication processing it can take up to 16 weeks. . process. Understanding an IRS notice or letter Making a tax payment. The IRS uses Using direct deposit. The fastest way to you’ve received. Go to IRS.gov/Notices the latest encryption technology to ensure receive a tax refund is to file electronically to find additional information about your electronic payments are safe and and choose direct deposit, which securely responding to an IRS notice or letter. secure. You can make electronic and electronically transfers your refund payments online, by phone, and from a directly into your financial account. Direct Territory Resources mobile device using the IRS2Go app. deposit also avoids the possibility that Addresses of walk-in sites in each territory Paying electronically is quick, easy, and your check could be lost, stolen, or and other ways to get forms and faster than mailing in a check or money returned undeliverable to the IRS. Eight in publications are listed below. order. Go to IRS.gov/Payments for 10 taxpayers use direct deposit to receive information on how to make a payment American Samoa their refunds. The IRS issues more than using any of the following options. 90% of refunds in less than 21 days. • IRS Direct Pay: Pay your individual tax American Samoa Government Getting a transcript of your return. The bill or estimated tax payment directly from Tax Office quickest way to get a copy of your tax your checking or savings account at no Executive Office Building transcript is to go to IRS.gov/Transcripts. cost to you. First Floor Click on either “Get Transcript Online” or • Debit or Credit Card: Choose an Pago Pago, AS 96799 “Get Transcript by Mail” to order a free approved payment processor to pay copy of your transcript. If you prefer, you online, by phone, or by mobile device. You can order forms and can order your transcript by calling • Electronic Funds Withdrawal: Offered publications by calling 800-908-9946. only when filing your federal taxes using 684-633-4181. tax return preparation software or through Reporting and resolving your tax-rela- a tax professional. You can order forms and ted identity theft issues. Electronic Federal Tax Payment publications through the fax • Tax-related identity theft happens when • System: Best option for businesses. 684-633-1513. someone steals your personal information Enrollment is required. to commit tax fraud. Your taxes can be Check or Money Order: Mail your CNMI affected if your SSN is used to file a • payment to the address listed on the fraudulent return or to claim a refund or notice or instructions. CNMI credit. Cash: You may be able to pay your Division of Revenue and Taxation • The IRS doesn’t initiate contact with • taxes with cash at a participating retail Dandan Commercial Center taxpayers by email, text messages, store. P.O. Box 5234 CHRB telephone calls, or social media channels Same-Day Wire: You may be able to do Saipan, MP 96950 to request personal or financial • same-day wire from your financial information. This includes requests for institution. Contact your financial You can order forms and personal identification numbers (PINs), institution for availability, cost, and cut-off publications by calling passwords, or similar information for credit times. 670-664-1000. cards, banks, or other financial accounts. • Go to IRS.gov/IdentityTheft, the IRS What if I can’t pay now? Go to IRS.gov/ You can order forms and Identity Theft Central webpage, for Payments for more information about your publications through the fax information on identity theft and data options. 670-664-1015. security protection for taxpayers, tax • Apply for an online payment agreement professionals, and businesses. If your (IRS.gov/OPA) to meet your tax obligation You can get forms and SSN has been lost or stolen or you in monthly installments if you can’t pay publications at Finance.gov.mp/ suspect you’re a victim of tax-related your taxes in full today. Once you forms.html. complete the online process, you will

Instructions for Form 1040-SS (2020) -17- Page 18 of 19 Fileid: … ns/I1040SS/2020/A/XML/Cycle07/source 13:27 - 10-May-2021

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Guam You can get forms and TAS for Tax Professionals publications at the Virgin Islands Bureau of Internal Revenue. TAS can provide a variety of information Department of Revenue and for tax professionals, including tax law Taxation updates and guidance, TAS programs, Taxpayer Services Division Note. The addresses are subject to and ways to let TAS know about systemic P.O. Box 23607 change. problems you’ve seen in your practice. GMF, Guam 96921 The Taxpayer Advocate Service Low Income Taxpayer Clinics You can order forms and (TAS) Is Here To Help You (LITCs) publications by calling What is TAS? LITCs are independent from the IRS. 671-635-1840 or 671-635-1841. TAS is an independent organization within LITCs represent individuals whose income is below a certain level and need to You can order forms and the IRS that helps taxpayers and protects resolve tax problems with the IRS, such as publications through the fax taxpayer rights. Their job is to ensure that audits, appeals, and tax collection 671-633-2643. every taxpayer is treated fairly and that you know and understand your rights disputes. In addition, clinics can provide information about taxpayer rights and You can get forms and under the Taxpayer Bill of Rights. responsibilities in different languages for publications at Guamtax.com. individuals who speak English as a How Can You Learn About Your second language. Services are offered for Puerto Rico Taxpayer Rights? free or a small fee for eligible taxpayers. The Taxpayer Bill of Rights describes 10 To find a clinic near you, visit U.S. Internal Revenue Service basic rights that all taxpayers have when TaxpayerAdvocate.IRS.gov/about/LITC or 48 Carr 165 km.1.2 dealing with the IRS. Go to see IRS Pub. 4134, Low Income Taxpayer City View Plaza II Bldg. TaxpayerAdvocate.IRS.gov to help you Clinic List. Guaynabo, PR 00968-8000 understand what these rights mean to you Disclosure, Privacy Act, and Paper- and how they apply. These are your work Reduction Act Notice. The IRS See How To Get Tax Help and Getting rights. Know them. Use them. tax forms and publications, earlier. Restructuring and Reform Act of 1998, the Privacy Act of 1974, and Paperwork USVI What Can TAS Do For You? Reduction Act of 1980 require that when we ask you for information we must first U.S. Internal Revenue Service TAS can help you resolve problems that tell you our legal right to ask for the Ron De Lugo Federal Building and you can’t resolve with the IRS. And their information, why we are asking for it, and Courthouse service is free. If you qualify for their how it will be used. We must also tell you 5500 Veterans Drive, Room 216 assistance, you will be assigned to one what could happen if we do not receive it Charlotte Amalie, VI 00802 advocate who will work with you throughout the process and will do and whether your response is voluntary, everything possible to resolve your issue. required to obtain a benefit, or mandatory See How To Get Tax Help and Getting under the law. tax forms and publications, earlier. TAS can help you if: • Your problem is causing financial This notice applies to all papers you file USVI Bureau of Internal Revenue difficulty for you, your family, or your with us, including this tax return. It also 6115 Estate Smith Bay business; applies to any questions we need to ask Suite 225 • You face (or your business is facing) an you so we can complete, correct, or St. Thomas, VI 00802 immediate threat of adverse action; or process your return; figure your tax; and • You’ve tried repeatedly to contact the collect tax, interest, or penalties. IRS but no one has responded, or the IRS You can order forms and Our legal right to ask for information is hasn’t responded by the date promised. publications by calling sections 6001, 6011, and 7651 and their 340-715-1040. regulations. They say that you must file a How Can You Reach TAS? return or statement with the IRS and pay You can order forms and TAS has offices in every state, the District to the United States Treasury any tax for publications through the fax of Columbia, and Puerto Rico. Your local which you are liable. Your response is 340-774-2672. advocate’s number is in your local mandatory under these sections. Section directory and at 6109 requires you to provide your You can get forms and TaxpayerAdvocate.IRS.gov/Contact-Us. identifying number on the return. This is so publications at the Virgin Islands You can also call them at 877-777-4778 we know who you are, and can process Bureau of Internal Revenue. and in: your return and other papers. You must fill • American Samoa, the CNMI, and in all parts of the tax form that apply to USVI Bureau of Internal Revenue Guam: 808-566-2950 (in Hawaii); you. 4008 Estate Diamond–Plot 7-B • Puerto Rico, and USVI: 787-522-8600 You aren't required to provide the Christiansted, VI 00820–4421 for Spanish, and 787-522-8601 for English information requested on a form that is (in Puerto Rico). subject to the Paperwork Reduction Act You can order forms and unless the form displays a valid OMB publications by calling How Else Does TAS Help control number. Books or records relating 340-773-1040. to a form or its instructions must be Taxpayers? retained as long as their contents may You can order forms and TAS works to resolve large-scale become material in the administration of publications through the fax problems that affect many taxpayers. If any Internal Revenue law. 340-773-1006. you know of one of these broad issues, We ask for tax return information to please report it to them at IRS.gov/SAMS. carry out the tax laws of the United States.

-18- Instructions for Form 1040-SS (2020) Page 19 of 19 Fileid: … ns/I1040SS/2020/A/XML/Cycle07/source 13:27 - 10-May-2021

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

We need it to figure and collect the right amount of or to collect the tax you owe. If you have comments concerning the amount of tax. We may disclose your tax information to accuracy of these time estimates or the Comptroller General of the United suggestions for making this form simpler, If you do not file a return, do not States to permit the Comptroller General we would be happy to hear from you. You provide the information we ask for, or to review the Internal Revenue Service. can send us comments from IRS.gov/ provide fraudulent information, you may We may disclose your tax information to FormComments. You can write to the be charged penalties. We may also have Committees of Congress; federal, state, Internal Revenue Service, Tax Forms and to disallow any deductions shown on the and local child support agencies; and to Publications, 1111 Constitution Ave. NW, tax return. This could make the tax higher other federal agencies for the purposes of IR-6526, Washington, DC 20224. Do not or delay any refund, and the calculation of determining entitlement for benefits or the send the form to this address. Instead, see your social security benefits may be eligibility for and the repayment of loans. Where To File in the General Instructions, affected. We may also disclose this information to earlier. other countries under a tax treaty, or to Generally, tax returns and return Although we can't respond individually information are confidential, as stated in federal and state agencies to enforce federal nontax criminal laws, or to federal to each comment received, we do section 6103. However, section 6103 appreciate your feedback and will allows or requires the IRS to disclose or law enforcement and intelligence agencies to combat terrorism. consider your comments as we revise our give the information shown on your tax tax products. We can't answer tax return to others as described in the Code. Keep this notice with your records. It questions sent to the above address. For example, we may disclose your tax may help you if we ask you for other information to the SSA for use in information. If you have questions about calculating your social security benefits; to the rules for filing and giving information, the Department of Justice, to enforce the call or visit any IRS office. tax laws, both civil and criminal; and to The time needed to complete and file cities, states, the District of Columbia, and this form will vary depending on individual U.S. commonwealths or possessions to circumstances. The estimated average carry out their tax laws. time is: We may disclose your tax information to other persons as necessary to obtain Recordkeeping ...... 5 hr., 27 min. information needed to determine the Learning about the law or the form ...... 1 hr., 11 min. Preparing the form ...... 4hr., 1 min. Copying, assembling, and sending the form to the IRS ...... 1 hr., 16 min.

Instructions for Form 1040-SS (2020) -19-