2021 Instructions for Form 1040-SS

1 2021 Department of the Treasury Internal Revenue Service Instructions for Form 1040-SS . Self-Employment Tax Return (Including the Refundable Child Tax Credit for Bona Fide Residents of Puerto Rico). Section references are to the Internal The American Rescue Plan Act of claim the refundable child tax Revenue Code unless otherwise noted. 2021 (the ARP) adds new sections to credit. If you are solely filing Form the Internal Revenue Code to provide 1040-SS to claim the refundable child General Instructions credits for qualified sick and family tax credit, you only need to complete leave wages similar to the credits that Part I Total Tax and Credits and Part Future Developments were previously enacted under the II Bona Fide Residents of Puerto For the latest information about FFCRA and amended and extended Rico Claiming Refundable Child Tax developments related to Form by the COVID-related Tax Relief Act Credit of the form.

2 1040-SS and its Instructions , such as of 2020. The credits under sections legislation enacted after they were 3131 and 3132 are available for New filing statuses for 2021. The published, go to qualified leave wages paid for leave enhanced credit amount of the 2021. Form1040SS. taken after March 31, 2021, and RCTC phases out at different lower before October 1, 2021. income levels for different filing What's New Enhanced refundable child tax statuses. The head of household and qualifying widow(er) filing statuses Due date of return. File Form credit (RCTC) (for bona fide resi- were added to Form 1040-SS . 1040-SS by April 18, 2022. The due dents of Puerto Rico). Under the Choosing the head of household or date is April 18, instead of April 15, ARP, the child tax credit has been qualifying widow(er) filing status may because of the Emancipation Day enhanced for 2021.

3 If you were a increase your RCTC if your modified holiday in the District of bona fide resident of Puerto Rico, the AGI is more than $75,000. Columbia even if you don't live in the following now apply. District of Columbia. If you live in You can claim the credit even if you extension and expansion of credit Maine or Massachusetts, you have didn't work and even if you received for qualified sick and family leave until April 19, 2022. That is because of no income. You are not required to for certain household employees. the Patriots' Day holiday in those have social security or Medicare taxes The ARP provides that certain states. withheld, or have paid self-employed individuals can claim self-employment (SE) tax.

4 Credits for up to 10 days of paid sick Virtual currency. You will need to You can claim the credit even if you leave, and up to 60 days of paid answer the question on page 1 of only have one qualifying child. family leave, if they are unable to Form 1040-SS about whether you The child tax credit has been work or telework due to engaged in a transaction involving extended to qualifying children under circumstances related to coronavirus. virtual currency in 2021. See Virtual age 18. Currency under Specific Instructions , Depending on your modified Note. Self-employed individuals will later. adjusted gross income (AGI), you may claim these credits on their territory The COVID-19 related credit for receive an enhanced credit amount of income tax returns and not on the qualified sick and family leave wa- up to $3,600 for a qualifying child 2021 Form 1040-SS .

5 Ges has been extended and amen- under age 6 and up to $3,000 for a Repayment of self-employed tax ded. The Families First Coronavirus qualifying child over age 5 and under and household taxes deferred in Response Act (FFCRA) was age 18. 2020. In 2020, legislation allowed amended by recent legislation. The The enhanced credit amount certain individuals who filed Form FFCRA requirement that employers begins to phase out where modified 1040-SS and/or Schedule H to defer provide paid sick and family leave for AGI exceeds $150,000 in the case of the payment of 50% of the social reasons related to COVID-19 (the a joint return or surviving spouse, security tax imposed for the period employer mandate) expired on $112,500 in the case of a head of beginning on March 27, 2020, and December 31, 2020.

6 However, the household, and $75,000 in all other ending December 31, 2020, over the COVID-related Tax Relief Act of 2020 cases. next 2 years. To make the 2021. extends the periods for which For more information, see Part deferred payment, see How employers providing leave that II Bona Fide Residents of Puerto Self-Employed Individuals and otherwise meets the requirements of Rico Claiming Refundable Child Tax Household Employers Repay the FFCRA may continue to claim tax Credit. Deferred Social Security, later. credits for qualified sick and family leave wages paid for leave taken Bona fide residents of Part VII. We removed Part VII as it before April 1, 2021. TIP Puerto Rico filing just to does not apply for 2021.

7 The election Jan 28, 2022 Cat. No. 26341Y. to defer the payment of SE tax under received from the IRS. Entry spaces Another purpose of the form is for section 2302 of the FFCRA applied to for the IP PIN have been added to the bona fide residents of Puerto Rico to 2020 only. right of the spouse's signature block. file in order to claim the RCTC, even if Maximum income subject to social For more information, see Identity you do not have to pay SE tax. Protection PIN, later. security tax for 2021. For 2021, the See Who Must File, later, for maximum amount of self-employment Taxpayer identification number additional uses of this form. income subject to social security tax is (TIN) required to claim the RCTC. $142,800.

8 If you don't have a social security You may also be required to file an number (SSN) or an individual income tax return with the government Optional methods to figure net earnings. For 2021, the maximum taxpayer identification number (ITIN) of Guam, American Samoa, the USVI, income for using the optional methods issued on or before the due date of the CNMI, or Puerto Rico. See Pub. your 2021 Form 1040-SS (including 570, and contact your local territory is $5,880. extensions), you can't claim the RCTC tax office for more information. on an original or amended Form Reminders 1040-SS . Also, your qualifying child How To Get Tax Help Maximum income subject to social must have an SSN valid for If you have questions about a tax security tax for 2022.

9 For 2022, the employment issued prior to the due issue, need help preparing your tax maximum amount of self-employment date of your 2021 Form 1040-SS return, or want to download free income subject to social security tax is (including extensions). publications, forms, or Instructions , $147,000. For information on how to obtain an see How To Get Tax Help at the end Estimated tax payments. If you SSN, go to Social Security Number of the Instructions . You can find expect to owe self-employment (SE) and Card. additional resources to help you right tax of $1,000 or more for 2022, you If you are not eligible for an SSN, away at may need to make estimated tax you must apply for an ITIN. For more payments. Use Form 1040-ES, information on ITINs, go to Who Must File Estimated Tax for Individuals, to figure ITIN.

10 Also, see Form W-7 and its You must file Form 1040-SS if you your required payments and for the Instructions . meet all three requirements below. vouchers to send with your payments. 1. You, or your spouse if filing a Refunds for returns that claim the Schedule LEP (Form 1040). RCTC. Claiming the RCTC on your joint return, had net earnings from Schedule LEP is a form that allows 2021 Form 1040-SS will not delay self-employment (from other than taxpayers to request a preference to your refund. The requirement that church employee income) of $400 or receive written communications from refunds be delayed until mid-February more (or you had church employee the IRS in Spanish and other when a tax return claims the ACTC income of $ or more see languages.)