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2020 Instructions for Form 1040-SS

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2020 Instructions for Form 1040-SS Userid: CPM Schema: instrx Leadpct: 100% Pt. size: 9 Draft Ok to Print AH XSL/XML Fileid: … ns/I1040SS/2020/A/XML/Cycle07/source (Init. & Date) _______ Page 1 of 19 13:27 - 10-May-2021 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. 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. May 10, 2021 Cat. No. 26341Y Page 2 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. 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).
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