U.S. Individual Income Tax Return Forms

2020

Instructions for Form
1040-SS

Department of the Treasury
Internal Revenue Service

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
Code unless otherwise noted.

General Instructions
Future Developments

For the latest information about
developments related to Form 1040-SS
and its instructions, such as legislation
enacted after they were published, go to
IRS.gov/Form1040SS.

What's New
Coronavirus tax relief for certain individuals. The Coronavirus Aid, Relief, and
Economic Security (CARES) Act permits
certain individuals who file Form 1040-SS
and/or Schedule H to defer the payment of
50% of the social security tax imposed for
the period beginning on March 27, 2020,
and ending December 31, 2020. New Part
VII has been added to allow self-employed
persons to figure a maximum amount of
self-employment tax payments which may
be deferred. Also, Schedule H (Form
1040) has been modified to account for
the deferral discussed above.
Report the total payment amount you
defer on Part I, line 11. For more
information, see the instructions for Part I,
lines 4 and 11, and Part VII.
Credits for sick and family leave for
certain household employees. The
Families First Coronavirus Relief Act
(FFCRA)), as amended by the
COVID-related Tax Relief Act of 2020,
required certain businesses to provide
paid leave to workers who are unable to
work or telework due to circumstances
related to COVID-19, and offsets the costs
of providing the required leave with
refundable tax credits against employment
tax. Form 1040-SS filers who report
household employment taxes from
Schedule H (Form 1040) on Form
1040-SS may be eligible to claim a credit
on Part I, line 12, to cover the costs of
providing required qualified sick leave
wages and qualified family leave wages.
For more information, see the instructions
for Part I, lines 4 and 12.
The FFCRA also helps self-employed
individuals affected by coronavirus by
providing paid sick and family leave
credits equivalent to those that employers
Jan 29, 2021

are required to provide their employees for
qualified sick and family leave wages paid
during the period beginning April 1, 2020,
and ending March 31, 2021. Form
1040-SS filers will claim these credits on
their territory income tax returns, and not
Form 1040-SS.
Disaster tax relief. To find information
on the most recent tax relief provisions for
taxpayers affected by disaster situations
see Tax Relief in Disaster Situations. See
Pub. 547 for discussions on the special
rules that apply to federally declared
disaster areas.
Automatic 60-day extension. Certain
taxpayers affected by federally declared
disasters may be eligible for an automatic
60-day extension for filing returns, paying
taxes, and performing other tasks required
by the IRS. For more information, see Pub.
547.
Virtual currency. You will need to
answer the question on page 1 of Form
1040-SS about whether you engaged in a
transaction involving virtual currency in
2020. See Virtual Currency under Specific
Instructions, later.
Schedule LEP (Form 1040).
Schedule LEP is a new form that allows
taxpayers to request a preference to
receive written communications from the
IRS in Spanish and other languages. If a
language preference is requested, attach
the Schedule LEP (Form 1040) to your
Form 1040-SS when you file it. For more
information, including what languages are
available, get Schedule LEP at IRS.gov.
Identity Protection PIN for spouse.
Beginning in 2020, spouses must enter an
identity protection PIN on the Form
1040-SS if one has been received from
the IRS. Entry spaces for the identity
protection PIN have been added to the
right of the spouse's signature block. For
more information, see Identity Protection
PIN, later.
Maximum income subject to social security tax for 2020. For 2020, the
maximum amount of self-employment
income subject to social security is
$137,700.

Cat. No. 26341Y

Optional methods to figure net earnings. For 2020, the maximum income for
using the optional methods is $5,640.

Reminders
Maximum income subject to social security tax for 2021. For 2021, the
maximum amount of self-employment
income subject to social security is
$142,800.
Due date of return. The due date to file
Form 1040-SS is April 15, 2021.
Estimated tax payments. If you expect
to owe self-employment (SE) tax of $1,000
or more for 2021, you may need to make
estimated tax payments. Use Form
1040-ES, Estimated Tax for Individuals, to
figure your required payments and for the
vouchers to send with your payments.
Access your online account. Go to
IRS.gov/account to securely access
information about your federal tax
account. You must authenticate your
identity. View the amount you owe, review
the past 24 months of your payment
history, access online payment options,
and create or modify an online payment
agreement. You also can access your tax
records online.
Individual taxpayer identification number (ITIN) renewal. You may need to
renew your ITIN. For more information,
see the Instructions for Form W-7,
Application for IRS Individual Taxpayer
Identification Number.
Additional child tax credit (ACTC). If
you don't have an SSN or ITIN issued on
or before the due date of your 2020 Form
1040-SS (including extensions), you can't
claim the ACTC on an original or amended
Form 1040-SS. Also, your qualifying child
must have an SSN valid for employment
issued prior to the due date of your 2020
Form 1040-SS (including extensions).
See Taxpayer identification number
requirements under Part II—Bona Fide
Residents of Puerto Rico Claiming
Additional Child Tax Credit, later.
Refunds for returns that claim the
ACTC. The IRS expects the earliest
ACTC related refunds to be available in
taxpayer bank accounts or debit cards
starting mid-February 2021, if these

taxpayers chose direct deposit and there
are no other issues with their tax return.
For more information see IRS.gov/
individuals/refund-timing. This applies to
the entire refund, not just the portion
associated with the ACTC. For more
information, on the status of your refund,
see IRS.gov/refunds.
Electronic filing. You can e-file Form
1040-SS. For general information about
electronic filing, visit IRS.gov/efile.
Direct Pay. The best way to pay your
taxes is with IRS Direct Pay. It's the safe,
easy, and free way to pay from your
checking or savings account in one online
session. Go to IRS Direct Pay on IRS.gov.
Taxpayer Advocate Service (TAS).
TAS is an independent organization within
the IRS that helps taxpayers and protects
taxpayer rights. The telephone numbers
for the local advocate in the territories are:
• American Samoa, the CNMI, and
Guam: 808-566-2950 (in Hawaii);
• Puerto Rico, and USVI: 787-522-8600
for Spanish, and 787-522-8601 for English
(in Puerto Rico).
For more information, see The
Taxpayer Advocate Service (TAS) Is Here
To Help You under Additional Information,
later.

Purpose of Form

This form is for residents of the U.S. Virgin
Islands (USVI), Guam, American Samoa,
the Commonwealth of the Northern
Mariana Islands (CNMI), and the
Commonwealth of Puerto Rico (Puerto
Rico) who are not required to file a U.S.
income tax return but who have
self-employment income or are eligible to
claim certain credits. Residents of Puerto
Rico may file Form 1040-PR in place of
Form 1040-SS.
One purpose of the form is to report net
earnings from self-employment to the
United States and, if necessary, pay SE
tax on that income. The Social Security
Administration (SSA) uses this information
to figure your benefits under the social
security program. SE tax applies no matter
how old you are and even if you already
are receiving social security or Medicare
benefits.
See Who Must File, later, for additional
uses of this form.
You also may be required to file an
income tax return with the government of
Guam, American Samoa, the USVI, the
CNMI, or Puerto Rico. See Pub. 570, and
contact your local territory tax office for
more information.

How To Get Tax Help

If you have questions about a tax issue,
need help preparing your tax return, or
want to download free publications, forms,

or instructions, see How To Get Tax Help
at the end of the instructions. You can find
additional resources to help you right
away at IRS.gov.

Who Must File

You must file Form 1040-SS if you meet all
three requirements below.
1. You, or your spouse if filing a joint
return, had net earnings from
self-employment (from other than church
employee income) of $400 or more (or you
had church employee income of $108.28
or more—see Church Employees, later).
However, see Exceptions, later.
2. You do not have to file Form 1040
with the United States.
3. You are a bona fide resident of:
a. Guam,
b. American Samoa,
c. The USVI,
d. The CNMI, or
e. Puerto Rico (you can file either
Form 1040-PR (in Spanish) or Form
1040-SS).
Even if you have a loss or little
TIP income from self-employment, it
may benefit you to file Form
1040-SS and use either "optional method"
in Part VI. See Part VI—Optional Methods
To Figure Net Earnings, later.

Exceptions. If (2) and (3) under Who
Must File, earlier, apply, though (1) does
not apply, you must file Form 1040-SS (or
Form 1040-PR if you are a resident of
Puerto Rico) to:
• Report and pay household employment
taxes;
• Report and pay employee social
security and Medicare tax on: (a)
unreported tips, (b) wages from an
employer with no social security or
Medicare tax withheld, (c) uncollected
social security and Medicare tax on tips or
group-term life insurance (see the
instructions for Part I; Line 6, later);
• Report and pay the Additional Medicare
Tax (see the instructions for Part I, Line 5,
later);
• Claim excess social security tax
withheld;
• Claim the ACTC; and
• Claim the health coverage tax credit or
reconcile advance payments of the health
coverage tax credit made for you, your
spouse, or a dependent (bona fide
residents of Puerto Rico only).

Who Must Pay SE Tax
Self-Employed Persons

You must pay SE tax if you had net
earnings of $400 or more as a
self-employed person. If you are in

-2-

business (farm or nonfarm) for yourself,
you are self-employed.
You also must pay SE tax on your
share of certain partnership income and
your guaranteed payments. See
Partnership Income or Loss in the
instructions for Part V, later.

Church Employees

If you had church employee income of
$108.28 or more, you must pay SE tax on
that income. Church employee income is
wages you received as an employee
(other than as a minister or member of a
religious order) of a church or qualified
church-controlled organization that has a
certificate in effect electing exemption
from employer social security and
Medicare taxes.
If your only income subject to
self-employment tax is church employee
income, skip lines 1a through 4b in Part V.
Enter “-0-” on line 4c and go to line 5a.

Ministers and Members of
Religious Orders

In most cases, you must pay SE tax on
salaries and other income for services you
performed as a minister, a member of a
religious order who has not taken a vow of
poverty, or a Christian Science
practitioner. But if you filed Form 4361 and
received IRS approval, you will be exempt
from paying SE tax on those net earnings.
If you had no other income subject to SE
tax and do not owe any of the taxes listed
earlier under Who Must File, you aren't
required to file Form 1040-SS. However, if
you had other earnings of $400 or more
subject to SE tax, see Part V, line A.
If you have ever filed Form 2031
to elect social security coverage
CAUTION on your earnings as a minister,
you cannot revoke that election.

!

If you must pay SE tax, include this
income in Part IV, line 1. But do not report
it in Part V, line 5a; it isn't considered
church employee income.
Also include in Part IV, line 1:

• The rental value of a home or allowance

for a home furnished to you (including
payments for utilities), and
• The value of meals and lodging
provided to you, your spouse, and your
dependents for your employer's
convenience.

However, do not include in Part IV,
line 1:
• Retirement benefits you received from
a church plan after retirement, or
• The rental value of or allowance for a
home furnished to you (including
payments for utilities) after retirement.
If you were an ordained minister, a
member of a religious order who has not
taken a vow of poverty, or a Christian
Instructions for Form 1040-SS (2020)

Science practitioner, and were employed
by a church (congregation) for a salary, do
not include that income in Form 1040-SS,
Part IV. Instead, figure your SE tax by
completing Part V, including on line 2 this
income and any rental (parsonage)
allowance or the value of meals and
lodging provided to you. On the same line,
subtract the allowable amount of any
unreimbursed business expenses you
incurred as a church employee. Attach an
explanation.
For details, see Pub. 517.

Members of Recognized
Religious Sects

If you have conscientious objections to
social security insurance because of your
membership in and belief in the teachings
of a religious sect recognized as being in
existence at all times since December 31,
1950, and which has provided a
reasonable level of living for its dependent
members, you can request exemption
from SE tax by filing Form 4029. If you
filed Form 4029 and have received IRS
approval, don't file Form 1040-SS. See
Pub. 517 for details.

Employees of Foreign
Governments or International
Organizations

You must pay SE tax on income you
earned as a U.S. citizen or a resident of
Puerto Rico employed by a foreign
government (or, in certain cases, by a
wholly owned instrumentality of a foreign
government or an international
organization under the International
Organizations Immunities Act) for services
performed in the United States, Puerto
Rico, Guam, American Samoa, the USVI,
or the CNMI. Report income from this
employment on Part IV, line 1. Enter the
net amount from Part IV, line 27, on Part V,
line 2. If you performed services
elsewhere as an employee of a foreign
government or an international
organization, those earnings are exempt
from SE tax.

Commonwealth or Territory
Residents Living Abroad

In most cases, if you are a bona fide
resident of Guam, American Samoa, the
USVI, the CNMI, or Puerto Rico living
outside the territories or United States,
you must still pay any applicable SE tax.
Exception. The United States has social
security agreements with many countries
to eliminate dual taxes under two social
security systems. Under these
agreements, in most cases, you must pay
social security and Medicare taxes or
foreign health insurance only to the
country you live in.
If you have questions about
international social security agreements
Instructions for Form 1040-SS (2020)

visit the SSA International Programs
website at SSA.gov/international/
totalization_agreements.html. This
website has general information about
international social security agreements,
including information about the coverage
and social security taxation rules of the
agreements.
Even if you don’t have to pay SE
tax because of a social security
CAUTION agreement, you may still have to
file a tax return with the Internal Revenue
Service.

!

Chapter 11 Bankruptcy Cases

While you are a debtor in a Chapter 11
bankruptcy case, your net profit or loss
from self-employment will be included on
the income tax return (Form 1041) of the
bankruptcy estate. However, you are
responsible for paying self-employment
tax on your net earnings from
self-employment; not the bankruptcy
estate.
Enter on the dotted line next to line 3 of
Form 1040-SS, Part V, “Chap. 11
bankruptcy income” and the amount of
your net profit or (loss). Combine that
amount with the total of lines 1a, 1b, and 2
(if any) and enter the result on line 3.
For other reporting requirements, see
the Instructions for Form 1040.

More Than One Business

If you were a farmer and had at least one
other business or you had two or more
nonfarm businesses, your net earnings
from self-employment are the combined
net earnings from all of your businesses. If
you had a loss in one business, it reduces
the income from another. Complete and
file only one Form 1040-SS for any 1 year.
Attach a separate Part III or Part IV for
each trade or business, and combine the
net earnings in a single Part V.
Joint returns. If both you and your
spouse have self-employment income
from separate farm or nonfarm
businesses, each of you must complete
and file a separate Part III or Part IV. Be
sure to enter at the top of each Part III or
Part IV the name and SSN of the spouse
who owns the business. Each of you also
must complete a separate Part V. Attach
these pages to a single Form 1040-SS.

Business Owned and
Operated by Spouses

If you and your spouse jointly own and
operate an unincorporated business (farm
or nonfarm) and share in the profits and
losses, you are partners in a partnership,
whether or not you have a formal
partnership agreement. Do not use Part III
or Part IV. Instead, file the appropriate
partnership return.
-3-

Exception—Qualified joint venture
(QJV).
If you and your spouse materially
participate (see Material participation in
the 2020 Instructions for Schedule C
(Form 1040)) as the only members of a
jointly owned and operated business, and
you file a joint Form 1040-SS for the tax
year, you can make a joint election to be
taxed as a QJV instead of a partnership.
To make this election, you must divide all
items of income, gain, loss, deduction,
and credit attributable to the business
between you and your spouse in
accordance with your respective interests
in the venture. Each of you must file a
separate Part III or Part IV, as well as a
separate Part V. On each line of your
separate Part III or Part IV, you must enter
your share of the applicable income,
deduction, or loss. For complete
information on this election, see the 2020
Instructions for Schedule E (Form 1040).
For more information on QJVs, go to
IRS.gov and enter “qualified joint venture”
in the search box.
Rental real estate business. If you
and your spouse make the QJV election
for your rental real estate business, in
most cases the income isn't subject to SE
tax (for an exception, see item 3 under
Other Income and Losses Included in Net
Earnings From Self-Employment in the
instructions for Part V, later).
If the QJV election is made for a farm
rental business that isn't included in
self-employment, the income isn't subject
to SE tax. Don’t include the income on
Form 1040-SS. Depending on the source
of the income (possession, U.S. source, or
other foreign source), you may need to file
other tax forms. See Pub. 570 and Form
4835, for more information.
Community property. If you and your
spouse wholly own an unincorporated
business as community property under the
community property laws of a state,
foreign country, or U.S. possession, the
income and deductions are reported
based on the following.
• If only one spouse participates in the
business, all of the income from that
business is the self-employment earnings
of the spouse who carried on the
business.
• If both spouses participate, the income
and deductions are allocated to the
spouses based on their distributive
shares.
• If either or both you and your spouse
are partners in a partnership, see
Partnership Income or Loss in the
instructions for Part V, later.
• If you and your spouse elected to treat
the business as a QJV, see
Exception—Qualified joint venture (QJV),
earlier.

Where To File

If you are enclosing a payment, send your
Form 1040-SS to:
Internal Revenue Service
P. O. Box 1303
Charlotte, NC 28201-1303
If you aren't enclosing a payment, send
your Form 1040-SS to:
Department of the Treasury
Internal Revenue Service
Austin, TX 73301-0215

When To File

If you file on a calendar year basis, file by
April 15, 2021.
If you file on a fiscal year basis, file by
the 15th day of the 4th month after the
close of your fiscal year.

Extension of Time To File

If you can't file Form 1040-SS by the due
date, you can get an extension of time to
file the form. In some cases, you can get
an extension of time to file and pay any tax
due.
Bona fide residents of Puerto Rico.
You can apply for an automatic 6-month
extension of time to file Form 1040-SS
(until October 15, 2021, for calendar year
taxpayers). To get this automatic
extension, you must file Form 4868, by the
regular due date of your return (April 15,
2021, for calendar year taxpayers). You
can file Form 4868 either by paper or
electronically through IRS e-file. For
details, see the instructions on Form 4868.
This 6-month extension to file
does not extend the time to pay
CAUTION your tax. Any interest due on
unpaid taxes is calculated from the original
due date of the return.

!

Bona fide residents of American Samoa, the CNMI, Guam, or the USVI.
You can apply for the automatic 6-month
extension described, earlier, or you can
receive an automatic 2-month extension
and then apply for an additional 4-month
extension if you still need more time.
Automatic 2-month extension. You
are allowed an automatic 2-month
extension to file your return and pay your
tax if you are outside the United States
and Puerto Rico on the day Form 1040-SS
is due (April 15, 2021, for calendar year
taxpayers). Although you have an
extension of time to pay your tax, interest
on any unpaid tax will be charged from the
original due date of the return.
To get this automatic extension, you
must file Form 1040-SS by the extended
due date (June 15, 2021, for calendar year
taxpayers) and attach a statement
explaining that on the regular due date of

your return you were a bona fide resident
of American Samoa, the CNMI, Guam, or
the USVI.
Additional 4-month extension. If you
can't file your return within the automatic
2-month extension period, in most cases
you can get an additional 4 months to file
your return, for a total of 6 months. File
Form 4868 by the extended due date
allowed by the 2-month extension (June
15, 2021, for calendar year taxpayers).
Follow the instructions for completing
Form 4868, and be sure to check the box
on line 8.
Unlike the original 2-month extension,
the additional 4 months of time to file is
not an extension of time to pay. You must
make an accurate estimate of your tax
based on the information available to you.
If you find you can't pay the full amount
due with Form 4868, you can still get the
extension. You will owe interest on the
unpaid amount from the original due date
of the return.
Where to file extension requests. If you
are enclosing a payment, send Form 4868
with your payment to:
Internal Revenue Service
P.O. Box 1302
Charlotte, NC 28201-1302
If you aren't enclosing a payment, send
Form 4868 to:
Department of the Treasury
Internal Revenue Service
Austin, TX 73301-0215
Automatic 60-day extension. Certain
taxpayers affected by federally declared
disasters may be eligible for an automatic
60-day extension for filing returns, paying
taxes, and performing other tasks required
by the IRS. For more information, see Pub.
547.

Specific Instructions
Fiscal Year Filers

If your tax year is a fiscal year, use the tax
rate and earnings base that apply at the
time the fiscal year begins. Don’t prorate
the tax or earnings base for a fiscal year
that overlaps the date of a rate or earnings
base change.

Name and SSN

To ensure proper credit to your social
security account, enter your name and
SSN, and your spouse's if filing a joint
return, exactly as shown on your social
security card. If you do not have an SSN,
get Form SS-5, Application for a Social
Security Card, from an SSA district office
or online at SSA.gov/forms/ss-5.pdf.
-4-

If you are not eligible for an SSN, you
must apply for an ITIN. For more
information on ITINs, go to IRS.gov/ITIN.
Also, see Form W-7 and its instructions.

Virtual Currency

Virtual currency is a digital representation
of value, other than a representation of the
U.S. dollar or a foreign currency (“real
currency”), that functions as a unit of
account, a store of value, or a medium of
exchange. Some virtual currencies are
convertible, which means that they have
an equivalent value in real currency or act
as a substitute for real currency. The IRS
uses the term “virtual currency” to
describe the various types of convertible
virtual currency that are used as a medium
of exchange, such as digital currency and
cryptocurrency. Regardless of the label
applied, if a particular asset has the
characteristics of virtual currency, it will be
treated as virtual currency for Federal
income tax purposes.
If, in 2020, you engaged in any
transaction involving virtual currency,
check the “Yes” box next to the question
on virtual currency on page 1 of Form
1040-SS. A transaction involving virtual
currency includes, but is not limited to:
• The receipt or transfer of virtual
currency for free (without providing any
consideration), including from an airdrop
or hard fork;
• An exchange of virtual currency for
goods or services;
• A purchase or sale of virtual currency;
• An exchange of virtual currency for
other property, including for another virtual
currency; and
• An acquisition or disposition of a
financial interest in virtual currency.
A transaction involving virtual currency
does not include the holding of virtual
currency in a wallet or account, or the
transfer of virtual currency from one wallet
or account you own or control to another
that you own or control. If you received
any virtual currency as compensation for
services, or disposed of any virtual
currency that you held for sale to
customers in a trade or business, or
inventory or services, you should report
the income in Part III or Part IV of the Form
1040-SS.
If you disposed of any virtual currency
that was held as a capital asset through a
sale, exchange, or transfer, report it in
your territory income tax return. If you
received any virtual currency as
compensation for services, or disposed of
any virtual currency that you held for sale
to customers in a trade or business, you
must report the income as you would
report other income of the same type (for
example, W-2 wages) in your territory
income tax return.
Instructions for Form 1040-SS (2020)

For more information, go to IRS.gov/
virtualcurrencyfaqs.

Part I—Total Tax and
Credits
Line 1

Check the filing status that applies to you.
Single. Your filing status is single if:
1. On the last day of the year, you’re
unmarried or legally separated from your
spouse under a divorce or separate
maintenance decree, or
2. You meet all of the following
conditions.
a. You lived apart from your spouse
for the last 6 months of 2020. Temporary
absences for special circumstances, such
as business, medical care, school, or
military service, count as time lived in the
home.
b. You file a separate return from your
spouse.
c. You paid over half the cost of
keeping up your home for 2020.
d. Your home was the main home of
your child, adopted child, stepchild, or
eligible foster child for more than half of
2020. Temporary absences by you or the
child for special circumstances, such as
school, vacation, business, medical care,
military service, or detention in a juvenile
facility, count as time lived in the home.
Also, a child is considered to have lived
with you for more than half of 2020 if the
child was born or died in 2020 and your
home was the child's home for more than
half of the time he or she was alive.
e. If you filed Form 1040, you could
claim the child as your dependent or could
claim the child except that the child's other
parent can claim the child under the rules
for children of divorced or separated
parents (see Pub. 501).
Married filing jointly. You can choose
this filing status if you were married at the
end of 2020 and both you and your
spouse agree to file a joint return. You also
can choose this filing status if your spouse
died in 2020 and you didn’t remarry in
2020.
If you choose to file a joint return, check
the box for married filing jointly and be
sure to include your spouse's name and
SSN on the lines provided below your
name and SSN. If your spouse also had
self-employment income, complete and
attach a separate Part V and Part VII, and
if applicable, Part VI. If necessary, attach a
separate Part III or Part IV for your
spouse's farm or nonfarm business.
Joint and several tax liability. If you
file a joint return, both you and your
spouse generally are responsible for the
tax and any interest or penalties due on
Instructions for Form 1040-SS (2020)

the return. This means that if one spouse
doesn't pay the tax due, the other may
have to.
However, you may qualify for relief
from an existing tax liability on your joint
return if:
• There is an understatement of the
amount of tax because your spouse
omitted income or claimed false
deductions or credits;
• You are divorced, separated, or no
longer living with your spouse; or
• Given all the facts and circumstances, it
wouldn’t be fair to hold you liable for the
tax.
File Form 8857 to request relief. Some
requests for relief may need to be filed
within two years of the date on which the
IRS first attempted to collect the tax from
you. For more information,
go to IRS.gov/InnocentSpouse.
Married filing separately. You can
choose this filing status if you were
married at the end of 2020. This method
may benefit you if you want to be
responsible only for your own tax.

Line 2

Enter the required information for each
child for which you are claiming the ACTC
on Part II, line 3. See Qualifying for the
Credit under Part II—Bona Fide Residents
of Puerto Rico Claiming Additional Child
Tax Credit, later.
You cannot take the credit for other
dependents on Form 1040-SS. Do not
enter a person who is a qualifying person
for purposes of the credit for other
dependents on Part I, line 2. For more
information on how the credit for other
dependents may affect the calculation of
your ACTC, see Specific Instructions for
the ACTC Worksheet, later.

Line 4

If either of the following applies, see
Schedule H (Form 1040), and its
instructions to find out if you owe
household employment taxes.
• You paid any one household employee
cash wages of $2,200 or more in 2020.
• You paid total cash wages of $1,000 or
more in any calendar quarter of 2019 or
2020 to all household employees.
Note: See the instructions for line 11 for
payments of social security taxes reported
on Schedule H (Form 1040) that may be
deferred.

Line 5

Enter the total Additional Medicare Tax
from line 18 of Form 8959 on line 5. Attach
Form 8959. See Form 8959 and the
Instructions for Form 8959 for more
information.

-5-

Line 6

Include the following taxes in the line 6
total.
Employee social security and Medicare tax on tips not reported to employer. Complete Form 4137 if you
received cash and charge tips of $20 or
more in a calendar month and didn’t report
all of those tips to your employer. On the
dotted line next to line 6, enter “Tax on
Tips,” and the amount of tax due (from
Form 4137, line 13). Be sure to include
this tax in the total for line 6. Attach to
Form 1040-SS the completed Form 4137.
Uncollected employee social security
and Medicare tax on tips. If you didn’t
have enough wages to cover the social
security and Medicare tax due on tips you
reported to your employer, the amount of
tax due should be identified with codes A
and B in box 12 of your Form W-2AS,
W-2CM, W-2GU, or W-2VI; or entered in
boxes 25 and 26 of your Form 499R-2/
W-2PR. Include this tax in the total for
line 6. Enter the amount of this tax and
“Uncollected Tax” on the dotted line next
to line 6.
Uncollected employee social security
and Medicare tax on group-term life insurance. If you had group-term life
insurance through a former employer, you
may have to pay social security and
Medicare tax on part of the cost of the life
insurance. The amount of tax due should
be identified with codes M and N in box 12
of your Form W-2AS, W-2CM, W-2GU, or
W-2VI. If you are a bona fide resident of
Puerto Rico, contact your employer for this
amount. Include this tax in the total for
line 6. Enter the amount of this tax and
“Uncollected Tax” on the dotted line next
to line 6.
Uncollected employee social security
and Medicare tax on wages. If you’re
an employee who received wages from an
employer who didn’t withhold social
security and Medicare tax from your
wages, complete Form 8919 to figure your
share of the unreported tax. Enter the
amount of tax due (from Form 8919,
line 13) and “Uncollected Tax” on the
dotted line next to line 6, and include this
tax in the total for line 6. Attach to Form
1040-SS the completed Form 8919.
Repayment of excess advance payments of the health coverage tax credit. If you received the benefit of advance
payments of the health coverage tax credit
for months you weren’t eligible, the
amount on line 5 of Form 8885 may be
negative. On the dotted line next to line 6,
enter “HCTC” and the additional tax as a
positive amount. Include this tax in the
total for line 6. Attach the completed Form
8885 to Form 1040-SS.

Line 7

Enter any estimated tax payments you
made for 2020 including any overpayment
from your 2019 return that you applied to
your 2020 estimated tax. If you or your
spouse paid separate estimated tax but
are now filing a joint return, add the
amounts you each paid and enter the total
on line 7. If you and your spouse paid joint
estimated tax but are now filing separate
returns, you can divide the amount paid in
any way you choose as long as you both
agree. If you can't agree, you must divide
the payments in proportion to each
spouse's individual tax as shown on your
separate returns for 2020. For an example
of how to do this, see Pub. 505.

Line 8

If you, or your spouse if filing a joint return,
had more than one employer for 2020,
and total wages of more than $137,700,
too much social security tax may have
been withheld. You can take a credit on
this line for the amount withheld in excess
of $8,537.40. But if any one employer

withheld more than $8,537.40, you must
ask that employer to refund the excess to
you. You can't claim it on Form 1040-SS.
Figure this amount separately for you and
your spouse. You must attach Forms
W-2AS, W-2CM, W-2GU, W-2VI, or
499R-2/W-2PR. See Pub. 505 for more
information.

Line 10

entered amounts on Part I, line 3 or 4, you
can defer some of the self-employment
and household employment tax payments
you may owe on your 2020 tax return and
pay them later instead. However, you can’t
defer amounts that you have already paid.
If you qualify, the amount you may defer is
figured in the Deferral Worksheet for Filers
With Amounts on Line 3 or Line 4 of Form
1040-SS.

Line 11

The deferred amount is a deferral
of payments, not a deferral of your
CAUTION 2020 tax liability. Any amount you
enter on line 10 of the worksheet must be
paid by the due dates shown on lines 13
and 14 of the worksheet to be treated as
timely and avoid interest and penalties.
Any deferred amount may be paid before
the indicated due dates. Payments you
make are first applied against your
payment due on December 31, 2021, and
then applied against your payment due on
December 31, 2022.

If, during 2020, you were a bona fide
resident of Puerto Rico and an eligible
trade adjustment assistance (TAA)
recipient, alternative TAA (ATAA)
recipient, reemployment trade adjustment
assistance (RTAA) recipient, Pension
Benefit Guaranty Corporation (PBGC)
payee, or qualifying family member, see
the 2020 Form 8885, and its instructions
to figure the amount of your credit, if any.
See chapter 1 of Pub. 570 for the bona
fide residency rules.

!

Deferral for certain Form 1040-SS or
Schedule H (Form 1040) filers. If you

Deferral Worksheet for Filers With Amounts on Line 3 or Line 4 of Form 1040-SS
Before you begin:

1a.
1b.
1c.
1d.
2.
3.
4.
5.
6.
7.
8.
9.
10.

11.
12.
13.
14.

Complete Schedule H (Form 1040), if applicable, Part VII, Form 1040-SS, and Form 1040-SS, Part I,
lines 1 through 8.

Enter the amount from Form 1040-SS, Part I, line 7 . . . . . . . . . . . . . . . . . . . . . . . . 1a.
Enter the amount from Form 1040-SS, Part I, line 8 . . . . . . . . . . . . . . . . . . . . . . . . 1b.
Enter any amount you paid with Form 4868 to request an extension of time to
file. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1c.
Add lines 1a through 1c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1d.
Enter the amount from Form 1040-SS, Part I,
line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.
Enter the amount(s) from line 8b of your Schedule(s) H
(Form 1040) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.
Enter the amount from line 8d of your Schedule(s) H
(Form 1040) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
Enter the amount from Form 1040-SS, Part VII,
line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.
Add lines 5 and 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.
Subtract line 7 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.
Subtract line 8 from line 1d. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . 9.
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.
Enter the amount you choose to report on Form 1040-SS, Part I, line 11 . . . . . . . . . . . . . . . . . . . . . . . 11.
Enter one-half of the amount on line 7 above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
Enter the smaller of line 11 or line 12. You must pay this amount by 12/31/2022 . . . . . . . . . . . . . . . . . 13.
Subtract line 13 from line 11. You must pay this amount by 12/31/2021 . . . . . . . . . . . . . . . . . . . . . . . . 14.

-6-

Instructions for Form 1040-SS (2020)

Line 12

Add lines 7 through 11. Enter the total on
line 12.
Refundable sick and family leave credits. If you have any household
employment taxes on line 4, include the
amount shown on Schedule H (Form
1040), line 8e, in the total for line 12. On
the dotted line next to line 12, enter
“SLFLC” and show the amount. See
Schedule H (Form 1040) and its
instructions for more information.
Note. Do not enter any credits for sick
and family leave related to your
self-employment income reported on
line 3 of Form 1040-SS. Those amounts
will be reported on your territory tax return.
See the instructions for your territory tax
return for more information.
Additional Medicare Tax withheld. If
you had Additional Medicare Tax withheld
by your employer in 2020, include the
amount shown on Form 8959, line 24, in
the total for line 12. On the dotted line next
to line 12, enter “Form 8959” and show the
amount. Attach Form 8959. See Form
8959 and the Instructions for Form 8959
for more information.
Amount paid with request for extension of time to file. If you got an
automatic extension of time to file Form
1040-SS by filing Form 4868 or by making
a payment, enter the amount of the
payment or any amount you paid with
Form 4868. If you paid by credit or debit
card, don’t include on line 12 the
convenience fee you were charged. On
the dotted line next to line 12, enter “Form
4868” and show the amount paid.

Lines 14a Through 14d

Don’t request a deposit of your refund
to an account that isn't in your name (such
as your tax preparer's own account).

special symbols. Enter the number from
left to right and leave any unused boxes
blank. Don’t include the check number.

If you are asking to have a joint
refund deposited to an individual
CAUTION account and your financial
institution won’t allow this, your direct
deposit will be rejected back to the IRS
and a check will be sent instead. The IRS
isn’t responsible if a financial institution
rejects a direct deposit.

If the direct deposit to your account(s)
is different from the amount you expected,
you will receive an explanation in the mail
about 2 weeks after your refund is
deposited.

!

TreasuryDirect®. You can request a
deposit of your refund (or part of it) to a
TreasuryDirect® online account to buy
U.S. Treasury marketable securities and
savings bonds. For more information, go
to Treasurydirect.gov.
Form 8888. You can have your refund
directly deposited into more than one
account or use it to buy up to $5,000 in
paper Series I savings bonds. You don’t
need a TreasuryDirect® account to do
this. See the Instructions for Form 8888 for
more details.
Using direct deposit. The fastest way to
receive a tax refund is to combine direct
deposit and IRS e-file. Direct deposit
securely and electronically transfers your
refund directly into your financial account.
Eight in 10 taxpayers use direct deposit to
receive their refund. The IRS issues more
than 90% of refunds in less than 21 days.

Line 14b
The routing number for your financial
institution must be nine digits. The first two
digits must be 01 through 12 or 21 through
32. Otherwise, the direct deposit will be
rejected and a check sent instead.

If you want us to directly deposit the
amount shown on line 14a to your
checking or savings account at a U.S.
bank or other U.S. financial institution
(such as a mutual fund, brokerage firm, or
credit union):
• Check the box on line 14a and attach
Form 8888, if you want to split the direct
deposit of your refund into more than one
account or use all or part of your refund to
buy paper Series I savings bonds; or
• Complete lines 14b through 14d if you
want your refund deposited to only one
account.

Ask your financial institution for the
correct routing number to enter on line 14b
if:
• The routing number on a deposit slip is
different from the routing number on your
checks,
• Your deposit is to a savings account
that doesn't allow you to write checks, or
• Your checks state they are payable
through a financial institution different from
the one at which you have your checking
account.

If you don’t want your refund directly
deposited to your account, don’t check the
box on line 14a. Draw a line through the
boxes on lines 14b and 14d. We will send
you a check instead.

Check the appropriate box for the type of
account. Don’t check more than one box.
You must check the correct box to ensure
your deposit is accepted. For a
TreasuryDirect® online account, check
the “Savings” box.

The IRS isn't responsible for a lost
refund if you enter the wrong
CAUTION account information. Check with
your financial institution to make sure your
direct deposit will be accepted and to get
the correct routing and account numbers.

!

Instructions for Form 1040-SS (2020)

Line 14c

Line 14d
The account number can be up to 17
characters (both numbers and letters).
Include hyphens but omit spaces and
-7-

If you are asking to have a joint
refund deposited to an individual
CAUTION account and your financial
institution won’t allow this, your direct
deposit will be rejected back to the IRS
and a check will be sent instead. The IRS
isn’t responsible if a financial institution
rejects a direct deposit.

!

Line 15

Enter on line 15 the amount, if any, of the
overpayment on line 13 you want applied
to your 2021 estimated tax. The election to
apply part or all of the overpaid amount to
your 2021 estimated tax can't be changed
later.

Amount You Owe
To avoid interest and penalties,

TIP pay your taxes in full by April 15,

2021. You don’t have to pay if
line 16 is under $1.

Don’t include any estimated tax payment
for 2021 in this payment. Instead, make
the estimated tax payment separately.

Line 16—Amount You Owe
Making a tax payment. The IRS uses
the latest encryption technology to ensure
your electronic payments are safe and
secure. You can make electronic
payments online, by phone, and from a
mobile device using the IRS2Go app.
Paying electronically is quick, easy, and
faster than mailing in a check or money
order. Go to IRS.gov/Payments to make a
payment using any of the following
options.
• IRS Direct Pay: Pay your individual tax
bill or estimated tax payment directly from
your checking or savings account at no
cost to you.
• Debit or Credit card: Choose an
approved payment processor to pay
online, by phone, or by mobile device. A
convenience fee is charged by these
service providers.
• Electronic Funds Withdrawal: Offered
only when filing your federal taxes using
tax return preparation software or through
a tax professional.
• Electronic Federal Tax Payment
System: Best option for businesses.
Enrollment is required.
• Check or Money Order: Mail your
payment to the address listed on the
notice or instructions.

• Cash: You may be able to pay your
taxes with cash at a participating retail
store.
Notice to taxpayers presenting
checks. When you provide a check as
payment, you authorize us either to use
information from your check to make a
one-time electronic fund transfer from your
account or to process the payment as a
check transaction. When we use
information from your check to make an
electronic fund transfer, funds may be
withdrawn from your account as soon as
the same day we receive your payment,
and you will not receive your check back
from your financial institution.
What if I can’t pay now? Go to IRS.gov/
Payments for more information about your
options.
• Apply for an online payment agreement
(IRS.gov/OPA) to meet your tax obligation
in monthly installments if you can’t pay
your taxes in full today. Once you
complete the online process, you will
receive immediate notification of whether
your agreement has been approved.
• Use the Offer in Compromise PreQualifier (IRS.gov/OIC) to see if you can
settle your tax debt for less than the full
amount you owe.
Extension of time to pay. If paying the
tax when it is due would cause you an
undue hardship, you can ask for an
extension of time to pay by filing Form
1127 by April 15, 2021. In most cases, an
extension won't be granted for more than
6 months. You will be charged interest on
the tax not paid by April 15, 2021. You
must pay the tax before the extension runs
out. Penalties and interest will be imposed
until taxes are paid in full. To get Form
1127, and the most up-to-date
information, go to IRS.gov/forms-pubs/
about-form-1127.
Understanding an IRS notice or letter.
Go to IRS.gov/Notices to find additional
information about responding to an IRS
notice or letter.

Part II—Bona Fide
Residents of Puerto Rico
Claiming Additional Child
Tax Credit

If you were a bona fide resident of Puerto
Rico for the tax year and you qualify to
claim the ACTC, you must list each
qualifying child (defined later) in Part I,
line 2. Also complete Part II and the
Additional Child Tax Credit Worksheet
Part II, Line 3, later, to figure the amount of
your credit.

Bona fide residents of American

TIP Samoa, the CNMI, Guam, or the

USVI may be able to claim the
ACTC on their territory income tax return.
Contact your territory tax agency for
details. For more information, see Pub.
570.
If you take the ACTC even though you
aren't eligible and it is determined that
your error is due to reckless or intentional
disregard of the ACTC rules, you won't be
allowed to take the child tax credit, credit
for other dependents, or the ACTC for 2
years even if you are otherwise eligible to
do so. If you take the ACTC even though
you aren’t eligible and it is later
determined that you fraudulently took the
credit, you won't be allowed to take the
child tax credit, the credit for other
dependents, or the ACTC for 10 years.

Qualifying for the Credit

You may be able to claim the ACTC for
2020 if all of the following apply.
• You were a bona fide resident of Puerto
Rico (see Pub. 570).
• Social security and Medicare taxes
were withheld from your wages or you
paid SE tax.
• Neither you nor your spouse, if filing a
joint return, can be claimed as a
dependent on someone else's U.S.
income tax return.
• You had three or more qualifying
children (defined later).

!

CAUTION

You must have three or more
qualifying children to claim the
ACTC.

Qualifying child. A qualifying child for
purposes of the ACTC is a child who:
1. Is your son, daughter, stepchild,
foster child, brother, sister, stepbrother,
stepsister, half brother, half sister, or a
descendant of any of them (for example,
your grandchild, niece, or nephew). A
foster child is any child placed with you by
an authorized placement agency or by a
judgment, decree, or other order of any
court of competent jurisdiction.
Note. Your adopted child is always
treated as your own child. A child lawfully
placed for legal adoption is treated the
same as an adopted child.
2. Was under 17 at the end of 2020.
3. Was younger than you (or your
spouse, if filing jointly) or was permanently
and totally disabled (see Age Test in Pub.
501).
4. Didn’t provide over half of his or her
own support for 2020.
5. Lived with you for more than half of
2020. If the child didn’t live with you for the
required time, see Residency Test in Pub.
501.

-8-

6. Isn’t filing a joint return for 2020 or
is filing a joint return for 2020 only to claim
a refund of estimated or withheld taxes.
See examples under Joint Return Test (To
Be a Qualifying Child) in Pub. 501.
7. Was a U.S. citizen, U.S. national, or
a U.S. resident alien.
Note. If you are a U.S. citizen or U.S.
national and your adopted child lived with
you all year as a member of your
household, that child meets an exception
and may be a qualifying child although the
child is a nonresident alien. See Pub. 570
for more information.
Information about your qualifying
child. In Part I, line 2, enter each
qualifying child's name, SSN, and
relationship to you. If you have more than
six qualifying children, attach a statement
to Form 1040-SS with the required
information. If the child meets the
conditions to be a qualifying child of any
other person (other than your spouse if
filing jointly) for 2020, see Qualifying Child
of More Than One Person in Pub. 501.
Taxpayer identification number requirements. Each qualifying child must
have the required SSN. If you have a
qualifying child who doesn’t have the
required SSN, you can't use the child to
claim the ACTC on either your original or
an amended 2020 return. The required
SSN is one that is valid for employment
and that’s issued before the due date of
your 2020 return (including extensions).
You must have a taxpayer identification
number by the due date of your return. If
you don’t have an SSN or ITIN issued on
or before the due date of your 2020 return
(including extensions), you can’t claim the
ACTC on either your original or an
amended 2020 return. If you apply for an
ITIN on or before the due date of your
2020 return (including extensions) and the
IRS issues you an ITIN as a result of the
application, the IRS will consider your ITIN
as issued on or before the due date of
your return.

Line 1

For purposes of figuring the ACTC, you
must report all of your income derived
from sources within Puerto Rico that is
excluded from U.S. tax because you were
a bona fide resident of Puerto Rico.
This includes items such as wages,
interest, dividends, taxable pensions and
annuities, and taxable social security
benefits. Also include any profit or (loss)
from Part III, line 36, and Part IV, line 27.
For more information on these and other
types of income to include on line 1, see
the Form 1040 instructions. See Pub. 570,
for the rules to use in determining your
Puerto Rico source income.

Instructions for Form 1040-SS (2020)

Line 2

Enter the amount of your 2020 withheld
social security, Medicare, and Additional
Medicare taxes from Puerto Rico Form(s)
499R-2/W-2PR, boxes 21 and 23. If
married filing jointly, include your spouse’s
amounts with yours.
For information about Form 499R-2/
W-2PR, go to the Departamento de
Hacienda website at
Hacienda.gobierno.pr/.

Line 3

Use the Additional Child Tax Credit
Worksheet—Part II, Line 3 to figure your
ACTC. Enter the amount from line 19 of
the worksheet on Part II, line 3.

Specific Instructions for the ACTC
Worksheet
The ACTC may be limited if your income
derived from sources within Puerto Rico
exceeds the amounts shown on line 4 of
the ACTC Worksheet. Calculate the child
tax credit (CTC) on line 7 and the credit for
other dependents on line 8 as part of
figuring the limitation, if any, of your ACTC
even though you cannot take the CTC or
credit for other dependents on Form
1040-SS.
Line 7. Multiply the number of qualifying
children entered on line 2 of the worksheet
by $2,000 and enter the result on line 7. If
you have a child who is 17 or older that
was not reported on line 2, you may be
able to include that child in the calculation
of line 8, discussed next.
Line 8. Multiply the number of other
dependents who meet additional criteria
(defined later), including children who are
17 or older, by $500 and enter the amount
on line 8.
If you include dependents on line 8 of
the worksheet, you must attach a
statement to your Form 1040-SS, which
provides the following information for each
person included on line 8 who is a
qualifying person for purposes of the
credit for other dependents.
• First and last name.
• Tax identification number (SSN, ITIN, or
adoption taxpayer identification number
(ATIN)).
• Relationship to the person(s) filing
Form 1040-SS.
Qualifying person for the credit for
other dependents. A qualifying person
for purposes of the credit for other
dependents is a person who:
1. Qualifies as a dependent for
purposes of being claimed as a
dependent on a U.S. federal tax return.
See Pub. 501 for more information about
claiming someone as a dependent.

Instructions for Form 1040-SS (2020)

2. Cannot be reported on Part I, line 2,
of Form 1040-SS, and lines 2 and 7 of the
ACTC worksheet.
3. Was a U.S. citizen, U.S. national, or
a U.S. resident alien. For more
information, see Pub. 519. If the person is
your adopted child, see Adopted child
next.
Adopted child. Your adopted child is
always treated as your own child. An
adopted child includes a child lawfully
placed with you for legal adoption.
If you are a U.S. citizen or U.S. national
and your adopted child lived with you all
year as a member of your household in
2020, that child meets requirement 3,
under Qualifying person for the credit for
other dependents, earlier.
Taxpayer identification number
requirements for the credit for other
dependents. In addition to being a
qualifying person for the credit for other
dependents, the person must have an
SSN, ITIN, or ATIN issued on or before
the due date of your 2020 Form 1040-SS
(including extensions). If the person has
not been issued an SSN, ITIN, or ATIN by
that date, do not include the person on
line 8.

Part III—Profit or Loss
From Farming

For assistance with Part III (Profit or Loss
From Farming), see the 2020 Instructions
for Schedule F (Form 1040), and Pub.
225.

Accounting Methods

The accounting method you used to
record your farm income determines
whether you complete Section A or C, in
addition to Section B.
Cash method. Include in income both
the cash actually or constructively
received and the fair market value of
goods or other property you received. In
most cases, you deduct your expenses
when you pay them.
Accrual method. Include your income in
the year you earned it. It doesn't matter
when you get it. Deduct your expenses
when you incur them.

Accounting Methods for Small
Business Taxpayers
If you are a small business taxpayer
(defined later), you may be eligible to use
the cash method of accounting. A farm
corporation, partnership with a C
corporation as a partner, or other farm
business, with the exception of a tax
shelter, as defined in section 448(d)(3),
that satisfies the requirements of a small
business taxpayer, generally can use the
cash method of accounting. For more
-9-

information, see chapters 2 and 3 in Pub.
225, and Pub. 538.
Small business taxpayer. For tax years
beginning in 2020, you are a small
business taxpayer if you have average
annual gross receipts of $26 million or less
for the 3 prior tax years under the gross
receipts test. The gross receipts test
amount under section 448(c) is indexed
for inflation. For more information, see
Small business taxpayer in the
Instructions for Schedule F (Form 1040).
See Pub. 538 for special rules if you had a
short tax year or have not been in
existence for three years.
Inventory. For tax years beginning in
2020, if a small business taxpayer has $26
million in gross receipts (or less), it is not
required to account for inventories under
section 471(a), but can use a method of
accounting for inventories that either (1)
treats the inventories as non-incidental
materials and supplies, or (2) conforms to
their financial accounting treatment of
inventories or their books and records.
Small business taxpayers are exempt
from the requirement to capitalize costs
under section 263A. For more information,
see Capitalizing costs to property
produced and property acquired for resale
in the Instructions for Schedule F (Form
1040). Also, see Pub. 538.

Section A or C—Sales of
Livestock

Form 4797 is used to report sales of
livestock held for draft, breeding, sport, or
dairy purposes, and is attached to Form
1040. This income is taxable, but isn't
subject to SE tax. You should check to see
if this additional amount of gross income
will require you to file Form 1040 instead
of Form 1040-SS.
Note. Certain farmers and ranchers in the
territories who were forced to sell livestock
due to drought may have an additional
year to replace the livestock and defer
gains from the forced sales. For more
information, see Notice 2020-74, 2020-41
I.R.B. 935 at https://www.irs.gov/irb/
2020-41_IRB#NOT-2020-74 and Pub. 225
at IRS.gov/Pub225. Find information on
the most recent tax relief provisions for
taxpayers affected by disaster situations
at IRS.gov/newsroom/tax-relief-indisaster-situations.

Line 12

If you claim any car or truck expenses
(actual or the standard mileage rate), you
must provide the information requested in
Part V of Form 4562. Be sure to attach
Form 4562 to your return.

Line 23b
Business interest expense deduction.
Your business interest expense deduction

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

3.

4. Enter the amount shown below for your filing status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.

2.

• 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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.

6.

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.

-10-

Instructions for Form 1040-SS (2020)

may be limited. The Instructions for Form
8990, Limitation on Business Interest
Expense Under Section 163(j), explain
when a business interest expense
deduction is limited, who is required to file
Form 8990, and how certain businesses
may elect out of the business interest
expense limitation. For more information,
see chapter 4, Farm Business Expenses
in Pub. 225.

Line 34

List your other expenses and the amounts
on lines 34a through 34e. If you can’t enter
all of the expenses on lines 34a through
34e, enter the first four expenses on lines
34a through 34d. On line 34e, enter
“Other” and the total of the expenses not
already included on lines 34a through 34d.
Business meals. Enter your total
deductible business meals. This includes
expenses for meals while traveling away
from home for business. For more
information about which expenses are
deductible meal expenses and which are
nondeductible entertainment expenses,
see Pub. 463.

Part IV—Profit or Loss
From Business (Sole
Proprietorship)

For assistance with Part IV (Profit or Loss
From Business (Sole Proprietorship)), see
the 2020 Instructions for Schedule C
(Form 1040), Profit or Loss From
Business, and Pub. 334.

Accounting Methods for Small
Business Taxpayers

If you are a small business taxpayer
(defined later), you may qualify to use the
cash method of accounting and be
exempt from capitalizing certain expenses
under section 263A. In addition, you may
not be required to account for inventories
under section 471(a), and you may not be
subject to the business interest expense
limitation. For more information, see Pub.
334 and Pub. 538.
Small business taxpayer. For tax years
beginning in 2020, a small business
taxpayer is a taxpayer that has average
annual gross receipts of $26 million (or
less) for the three prior tax years and is not
a tax shelter as defined in section 448(d)
(3). The gross receipts test amount under
section 448(c) is indexed for inflation. See
Pub. 538 and Pub. 334, for taxpayers that
have had a short tax year or have not
been in existence for three years.

Lines 2a and 2g

You may not be required to account for
inventories under section 471(a). For
more information, see Pub. 334 and Pub.
538.

Instructions for Form 1040-SS (2020)

Line 7

If you were a general partner, reduce
lines 1a and 2 of Part V for any section
179 expense deduction, oil or gas
depletion, and unreimbursed partnership
expenses. Attach an explanation of these
deductions.

Line 14

If your partnership was engaged solely
in the operation of a group investment
program, earnings from the operation
aren't self-employment earnings for either
the general or limited partners.

If you claim any car or truck expenses
(actual or the standard mileage rate), you
must provide the information requested in
Part V of Form 4562. Be sure to attach
Form 4562 to your return.
Your business interest expense deduction
may be limited. The instructions for Form
8990 explain when a business interest
expense deduction is limited, who is
required to file Form 8990, and how
certain businesses may elect out of the
business interest expense limitation. For
more information, see the 2020
Instructions for Schedule C (Form 1040),
and chapter 8, Business Expenses, in
Pub. 334.

Line 22b

Enter your total deductible business
meals. This includes expenses for meals
while traveling away from home for
business. For more information about
which expenses are deductible meal
expenses and which are nondeductible
entertainment expenses, see Pub. 463.

Line 25a

List your other expenses and the amounts
on line 25a. If you can’t enter all of your
other expenses on the lines provided,
enter "Other" and the total of the expenses
not already listed on line 25a on the last
line under line 25a. Combine the amounts
reported on line 25a and enter the total on
line 25b.

Part V—Self-Employment
Tax
If you are filing a joint return and
both you and your spouse have
CAUTION income subject to SE tax, you
must each complete a separate Part V.
This includes those who made a joint
election to be taxed as a QJV.

!

What Is Included in Net
Earnings From
Self-Employment

In most cases, net earnings include your
net profit from a farm or nonfarm business.
If you were a partner in a partnership, see
the following instructions.

Partnership Income or Loss
When figuring your total net earnings from
self-employment, include your share of
partnership income or loss attributable to a
trade or business and any guaranteed
payments for services or the use of
capital. However, if you were a limited
partner, include only guaranteed
payments for services you actually
rendered to or on behalf of the
partnership.
-11-

If a partner died and the partnership
continued, include in self-employment
income the deceased partner's distributive
share of the partnership's ordinary income
or loss through the end of the month in
which he or she died. See section 1402(f).
If you were married and both you and
your spouse were partners in a
partnership, each of you must report your
net earnings from self-employment from
the partnership. Each of you must
complete a separate Part V. If only one of
you was a partner in a partnership, the
spouse who was the partner must pay SE
tax on all of his or her share of partnership
income.
Community property. Your own
distributive share of partnership income is
included in figuring your net earnings from
self-employment. Unlike the division of
that income between spouses for figuring
income tax, no part of your share can be
included in figuring your spouse's net
earnings from self-employment.

Share Farming
You are considered self-employed if you
produced crops or livestock on someone
else's land for a share of the crops or
livestock produced (or a share of the
proceeds from the sale of them). This
applies even if you paid another person
(an agent) to do the actual work or
management for you. For details, see Pub.
225.

Other Income and Losses
Included in Net Earnings
From Self-Employment
1. Rental income from a farm if, as
landlord, you materially participated in the
production or management of the
production of farm products on the land.
This income is farm earnings. To
determine if you materially participated in
farm management or production, don’t
consider the activities of any agent who
acted for you. The material participation
tests for landlords are explained in Pub.
225.
2. Cash or a payment-in-kind from the
Department of Agriculture for participating
in a land diversion program.

3. Payments for the use of rooms or
other space when you also provided
substantial services for the convenience of
your tenants. Examples are hotel rooms,
boarding houses, tourist camps or homes,
parking lots, warehouses, and storage
garages. See Pub. 334 for more
information.
4. Income from the retail sale of
newspapers and magazines if you were
age 18 or older and kept the profits.
5. Income you receive as a direct
seller. Newspaper carriers or distributors
of any age are direct sellers if certain
conditions apply. See Pub. 334 for details.
6. Amounts received by current or
former self-employed insurance agents
and salespersons that are:
a. Paid after retirement but figured as
a percentage of commissions received
from the paying company before
retirement,
b. Renewal commissions, or
c. Deferred commissions paid after
retirement for sales made before
retirement.
However, certain termination payments
received by former insurance
salespersons aren't included in net
earnings from self-employment (as
explained in item 11 under Income and
Losses Not Included in Net Earnings From
Self-Employment).
7. Income of certain crew members of
fishing vessels with crews of normally
fewer than 10 people. See Pub. 334 for
details.
8. Fees as a state or local government
employee if you were paid only on a fee
basis and the job wasn’t covered under a
federal-state social security coverage
agreement.
9. Interest received in the course of
any trade or business, such as interest on
notes or accounts receivable.
10. Fees and other payments received
by you for services as a director of a
corporation.
11. Recapture amounts under sections
179 and 280F included in gross income
because the business use of the property
dropped to 50% or less. Don’t include
amounts you recaptured on the disposition
of property. See Form 4797.
12. Fees you received as a
professional fiduciary. This also may apply
to fees paid to you as a nonprofessional
fiduciary if the fees relate to active
participation in the operation of the
estate's business or the management of
an estate that required extensive
management activities over a long period
of time.
13. Gain or loss from section 1256
contracts or related property by an options

or commodities dealer in the normal
course of dealing in or trading section
1256 contracts.

Income and Losses
Not Included in Net Earnings
From Self-Employment
1. Salaries, fees, etc., subject to
social security or Medicare tax that you
received for performing services as an
employee, including services performed
as a public official (except as a fee basis
government employee as discussed in
item 8 under Other Income and Losses
Included in Net Earnings From
Self-Employment, earlier).
2. Fees received for services
performed as a notary public. However, if
you have other earnings of $400 or more
subject to SE tax, on the dotted line next
to Part V, line 3, enter “Exempt—Notary”
and the amount of your net profit as a
notary public included in line 2. Subtract
that amount from the total of lines 1a, 1b,
and 2; and enter the result on line 3.
3. Income you received as a retired
partner under a written partnership plan
that provides lifelong periodic retirement
payments if you had no other interest in
the partnership and did not perform
services for it during the year.
4. Income from real estate rentals if
you didn’t receive the income in the
course of a trade or business as a real
estate dealer. Report this income in Part
IV if you and your spouse made an
election to be taxed as a QJV.
5. Income from farm rentals (including
rentals paid in crop shares) if, as landlord,
you did not materially participate in the
production, or management of the
production, of farm products on the land.
See Pub. 225 for details.
6. Payments you receive from the
Conservation Reserve Program (CRP) if
you are receiving social security benefits
for retirement or disability. Deduct these
payments on line 1b of Part V.
7. Dividends on shares of stock and
interest on bonds, notes, etc., if you didn’t
receive the income in the course of your
trade or business as a dealer in stocks or
securities.
8. Gain or loss from:
a. The sale or exchange of a capital
asset;
b. Certain transactions in timber, coal,
or domestic iron ore; or
c. The sale, exchange, involuntary
conversion, or other disposition of
property unless the property is stock in
trade or other property that would be
includible in inventory, or held mainly for
sale to customers in the ordinary course of
the business.

-12-

9. Net operating losses from other
years.
10. The qualified business income
deduction under section 199A.
11. Termination payments you
received as a former insurance
salesperson if all of the following
conditions are met.
a. The payment was received from an
insurance company because of services
you performed as an insurance
salesperson for the company.
b. The payment was received after
termination of your agreement to perform
services for the company.
c. You didn’t perform any services for
the company after termination and before
the end of the year in which you received
the payment.
d. You entered into a covenant not to
compete against the company for at least
a 1-year period beginning on the date of
termination.
e. The amount of the payment
depended primarily on policies sold by or
credited to your account during the last
year of the agreement, or the extent to
which those policies remain in force for
some period after termination, or both.
f. The amount of the payment did not
depend to any extent on length of service
or overall earnings from services
performed for the company (regardless of
whether eligibility for the payment
depended on length of service).

Line 1b

If you were receiving social security
retirement or social security disability
benefits at the time you received your
Conservation Reserve Program (CRP)
payment(s), include the amount of your
taxable CRP payment(s) in the total on
line 1b. The amount of these payments is
included in Part III, line 6, and in
information received from farm
partnerships showing your distributive
share.

Lines 4a Through 4c

If both lines 4a and 4c are less than $400
and you have deducted CRP payments on
line 1b, combine lines 1a and 2.
• If the total of lines 1a and 2 is $434 or
more, complete Part V through line 4c.
Enter “-0-” in Part I, line 3, unless also you
have church employee income. If you also
have church employee income, see
Church Employees, earlier. Also complete
lines 5a and 5b and the rest of Part V, as
appropriate.
• If the total of lines 1a and 2 is less than
$434, do not complete Part V unless you
choose to use an optional method to figure
your SE tax or you have church employee
income. If you have church employee
income, see Church Employees, earlier.
Instructions for Form 1040-SS (2020)

Also complete lines 5a and 5b and the rest
of Part V, as appropriate.

Line 8b

If you received tips of $20 or more in any
month and didn’t report the full amount to
your employer, you must file Form 4137
with Form 1040-SS (see instructions for
Part I, Line 6, earlier). Enter on line 8b the
amount from Form 4137, line 10.

Line 8c

If you are an employee who received
wages from an employer who didn’t
withhold social security and Medicare tax,
you must file Form 8919 with Form
1040-SS (see instructions for Part I,
Line 5, earlier). Enter on line 8c the
amount from Form 8919, line 10.

Part VI—Optional Methods
To Figure Net Earnings

The optional methods may give you credit
toward your social security coverage even
though you have a loss or a small amount
of income from self-employment. But the
optional methods may require you to pay
SE tax when you would otherwise not be
required to pay.
If you’re filing a joint return and both
you and your spouse choose to use an
optional method to figure net earnings
from self-employment, you must each
complete and attach a separate Part VI.
You can change the method after you
file your return. That is, you can change
from the regular to the optional method or
from the optional to the regular method.
To do this, file a new Form 1040-SS. See
the instructions under Corrected Returns,
later.
Using the optional methods may

TIP qualify bona fide residents of

Puerto Rico to claim the ACTC or
give them a larger credit.

Farm Optional Method

You may use this method to figure your
net earnings from farm self-employment if
your gross farm income was $8,460 or
less, or your net farm profits were less
than $6,107. Net farm profits are the total
of the amounts from Part III, line 36, and
your distributive share from farm
partnerships, minus the amount you would
have entered in Part V, line 1b, had you
not used the optional method.
There is no limit on how many years
you can use this method.
Under this method, report in Part VI,
line 2, the smaller of: two-thirds of your
gross farm income (not less than zero), or
$5,640. This method can increase or
decrease your net self-employment farm
earnings. You can use this method even if
your farming business had a loss.

Instructions for Form 1040-SS (2020)

For a farm partnership, figure your
share of gross income based on the
partnership agreement. With guaranteed
payments, your share of the partnership's
gross income is your guaranteed
payments plus your share of the gross
income after it is reduced by all
guaranteed payments made by the
partnership. If you were a limited partner,
include only guaranteed payments for
services you actually rendered to or on
behalf of the partnership.

Nonfarm Optional Method

You may be able to use this method to
figure your net earnings from nonfarm
self-employment if your net nonfarm
profits were less than $6,107, and also
less than 72.189% of your gross nonfarm
income. Net nonfarm profits are the total
of the amounts from Part IV, line 27, and
your distributive share from other than
farm partnerships.
To use this method, you also must be
regularly self-employed. You meet this
requirement if your actual net earnings
from self-employment were $400 or more
in 2 of the 3 years preceding the year you
use the nonfarm optional method. The net
earnings of $400 or more could be from
either farm or nonfarm earnings or both.
The net earnings include your distributive
share of partnership income or loss
subject to SE tax.
Use of the nonfarm optional method
from nonfarm self-employment is limited to
5 years. The 5 years don’t have to be
consecutive.
Under this method, report in Part VI,
line 4, the smaller of: two-thirds of your
gross nonfarm income (not less than
zero), or the amount in Part VI, line 3. But
you can't report less than your actual net
earnings from nonfarm self-employment.
Figure your share of gross income from
a nonfarm partnership in the same manner
as a farm partnership. For details, see
Farm Optional Method, earlier.

Using Both Optional Methods

If you have both farm and nonfarm
earnings, and can use both optional
methods, you can report less than your
total actual net earnings from farm and
nonfarm self-employment, but you can't
report less than your actual net earnings
from nonfarm self-employment alone.
If you use both methods to figure net
earnings from self-employment, you can't
report more than $5,640 of net earnings
from self-employment.

-13-

Part VII—Maximum
Deferral of
Self-Employment Tax
Payments
Line 1

Use any reasonable method to divide the
net profit or (loss) you reported on Part V,
line 3, between March 27, 2020, through
December 31, 2020 and the rest of the
year.
A reasonable method will accurately
reflect the time when income was earned
or accrued and deductible expenses were
paid or incurred, depending on your
method of accounting. In most cases, a
proportional division of the amount
reported on Part V, line 3, based upon the
number of days in each period will be
considered reasonable.

Line 3

Use any reasonable method to divide the
optional method amounts you reported on
Part VI, line 2, and Part VI, line 4, between
March 27, 2020, through December 31,
2020 and the rest of the year.
A reasonable method will accurately
reflect the time when income was earned
or accrued and deductible expenses were
paid or incurred, depending on your
method of accounting. In most cases, a
proportional division of the amounts
reported on Part VI, line 2, or Part VI,
line 4, based upon the number of days in
each period will be considered
reasonable.

Line 5

Use any reasonable method to divide the
church employee income you reported on
Part V, line 5a, between March 27, 2020,
through December 31, 2020 and the rest
of the year.
In most cases, the beginning of your
tax year will include income paid with your
first paycheck in 2020, even if some of the
income was earned in 2019, and the end
of your tax year will include your last
paycheck in 2020. A reasonable method
will accurately reflect when the church
employee income was earned. In most
cases, your church employee income will
be divided into regular pay periods which
can be used to attribute income to the
periods described in (1) and (2), under the
instructions for Part VII, line 5, earlier.

Line 9

The amount you figure on line 9 may not
be the amount of self-employments tax
payments that you can elect to defer. You
will include this amount to figure the
amount you can actually elect to defer on
Part I, line 11. See the instructions for Part
I, line 11, for additional information about
figuring and reporting the actual amount of

self-employment tax payment that you
may defer.
The amount you figure on line 9 is also
used to figure the amount of deferred
self-employment tax payments that you
must repay in 2021 and 2022. The
repayment amounts are split equally
between 2021 and 2022; however, your
maximum deferral amounts are used to
figure your equal repayment amounts, not
the amount you actually deferred. For
example, if your maximum deferral of
self-employment tax payments is $6,000,
but you only actually defer $4,000, your
first repayment amount will be $1,000 and
your second repayment amount will be
$3,000.

Completing Your Return
Signature and Date

Sign and date your return. It isn't
considered a valid return unless you sign it
in accordance with the requirements in
these instructions. If you are filing a joint
return, your spouse also must sign. If your
spouse can't sign the return, see Pub.
501.
In most cases, anyone you pay to
prepare your return must sign it and fill in
the Paid Preparer Use Only area in the
space provided. The preparer must give
you a copy of the return for your records.
Someone who prepares your return but
doesn't charge you should not sign your
return.
If you have someone prepare your
return, you are still responsible for the
correctness of the return.

Requirements for a Paper
Return

You must handwrite your signature on
your return if you file it on paper. Digital,
electronic, or typed-font signatures are not
valid signatures for Forms 1040-SS filed
on paper.

Requirements for an Electronic
Return

To file your return electronically, you must
sign the return electronically using a
personal identification number (PIN) and
providing the information described below.
If you are filing online using software, you
must use a Self-Select PIN. If you are filing
electronically using a tax practitioner, you
can use a Self-Select PIN or a Practitioner
PIN. For 2020, if we issued you an identity
protection personal identification number
(IP PIN) (as described in more detail
below), all six digits of your IP PIN must
appear in the IP PIN spaces provided next
to the space for your occupation for your
electronic signature to be complete.
Failure to include an issued IP PIN on the
return will result in an invalid electronic
signature and a rejected return. If you are

filing a joint return and both taxpayers
were issued an IP PIN, enter both IP PINs
in the spaces provided.

Third Party Designee

If you want to allow your preparer, a friend,
family member, or any other person you
choose to discuss your 2020 tax return
with the IRS, check the “Yes” box in the
“Third Party Designee” area on page 1 of
your return. Also, enter the designee's
name, phone number, and any five digits
the designee chooses as his or her
personal identification number (PIN).
If you check the “Yes” box, you (and
your spouse if filing a joint return) are
authorizing the IRS to call the designee to
answer any questions that may arise
during the processing of your return. You
also are authorizing the designee to:
• Give the IRS any information that is
missing from your return;
• Call the IRS for information about the
processing of your return or the status of
your refund or payment(s);
• Receive copies of notices or transcripts
related to your return, upon request; and
• Respond to certain IRS notices about
math errors, offsets, and return
preparation.
You aren't authorizing the designee to
receive any refund check, bind you to
anything (including any additional tax
liability), or otherwise represent you before
the IRS. If you want to expand the
designee's authorization, see Pub. 947.
The authorization will automatically end
no later than the due date (without regard
to extensions) for filing your 2021 tax
return. This is April 15, 2022, for most
people. If you wish to revoke the
authorization before it ends, see Pub. 947.

Daytime Phone Number

Beginning in 2020, IP PIN spaces have
been added for the spouse of the primary
taxpayer. If you are filing a joint return and
both taxpayers receive an IP PIN, both the
primary taxpayer and the spouse must
enter an IP PIN on the Form 1040-SS. An
IP PIN for both taxpayers must be entered
on Form 1040-SS if you are filing
electronically.
If you need more information or
answers to frequently asked questions on
how to use the IP PIN, go to IRS.gov/
Individuals/IPPIN. If you received an IP
PIN but misplaced it, you can try to
retrieve it online at IRS.gov/identity-theftfraud-scams/retrieve-your-ip-pin or call
800-908-4490.
Understanding identity theft. Go to
IRS.gov//identity-theft-central for
information and videos.

Additional Information
Corrected Returns

File a new Form 1040-SS to change a
Form 1040-SS you already filed. If you
filed Form 1040-SS but should have filed
Form 1040, file a corrected return on Form
1040. In either case, at the top of page 1
of the corrected return, enter
“CORRECTED” in dark bold letters
followed by the date. In most cases, an
amended Form 1040-SS (or Form 1040, if
applicable) must be filed within 3 years
after the date on which the original return
was filed or within 2 years after the tax
was paid, whichever is later.

Interest and Penalties

Do not figure the amount of any interest or
penalties you may owe. We will send you
a bill for any amount due.

Interest

Providing your daytime phone number can
help speed the processing of your return.
If we have questions about items on your
return and you can answer our questions
over the phone, we may be able to
continue processing your return without
mailing you a letter. If you are filing a joint
return, you can enter either your or your
spouse's daytime phone number.

We will charge you interest on taxes not
paid by their due date, even if an
extension of time to file is granted. We
also will charge you interest on penalties.
Interest is charged on the penalty from the
due date of the return (including
extensions).

Identity Protection PIN

Penalties

For 2020, if you received an Identity
Protection Personal Identification Number
(IP PIN) from the IRS, enter it in the IP PIN
spaces provided next to your daytime
phone number. You must correctly enter
all six numbers of your IP PIN. If you didn’t
receive an IP PIN, leave these spaces
blank.
New IP PINs are generated every
year. This year they will generally
CAUTION be sent out by mid-January 2021.
Use this IP PIN on your 2020 return as well
as any prior-year returns you file in 2021.

!

-14-

Late filing. If you don’t file your return by
the due date (including extensions), the
penalty is usually 5% of the amount due
for each month or part of a month your
return is late, unless you have a
reasonable explanation. If you do, attach a
statement to your return. The penalty can
be as much as 25% of the tax due. The
penalty is 15% per month, up to a
maximum of 75%, if the failure to file is
fraudulent. If your return is more than 60
days late, the minimum penalty will be

Instructions for Form 1040-SS (2020)

$435 or the amount of any tax you owe,
whichever is smaller.

for free tax preparation, or hire a tax
professional to prepare your return.

Late payment of tax. If you pay your
taxes late, the penalty is usually 1/2 of 1%
of the unpaid amount for each month or
part of a month the tax isn't paid. The
penalty can be as much as 25% of the
unpaid amount. It applies to any unpaid
tax on the return. This penalty is in
addition to interest charges on late
payments.

Using online tools to help prepare
your return. Go to IRS.gov/Tools for the
following.
• The Earned Income Tax Credit
Assistant (IRS.gov/EITCAssistant)
determines if you’re eligible for the earned
income credit (EIC).
• The Online EIN Application (IRS.gov/
EIN) helps you get an employer
identification number (EIN).
• The Tax Withholding Estimator
(IRS.gov/W4app) makes it easier for
everyone to pay the correct amount of tax
during the year. The tool is a convenient,
online way to check and tailor your
withholding. It’s more user-friendly for
taxpayers, including retirees and
self-employed individuals. The features
include the following.
• Easy to understand language.
• The ability to switch between screens,
correct previous entries, and skip screens
that don’t apply.
• Tips and links to help you determine if
you qualify for tax credits and deductions.
• A progress tracker.
• A self-employment tax feature.
• Automatic calculation of taxable social
security benefits.
• The First Time Homebuyer Credit
Account Look-up ( IRS.gov/HomeBuyer)
tool provides information on your
repayments and account balance.
• The Sales Tax Deduction Calculator
(IRS.gov/SalesTax) figures the amount
you can claim if you itemize deductions on
Schedule A (Form 1040).

Frivolous return. In addition to any other
penalties, the law imposes a penalty of
$5,000 for filing a frivolous return. A
frivolous return is one that doesn't contain
information needed to figure the correct
tax or shows a substantially incorrect tax
because you take a frivolous position or
desire to delay or interfere with the tax
laws. This includes altering or striking out
the preprinted language above the space
where you sign. For a list of positions
identified as frivolous, see Notice
2010-33, at IRS.gov/irb/
2010-17_IRB#NOT-2010-33.
Other. Other penalties can be imposed,
including those for negligence, substantial
understatement of tax, reportable
transaction understatements, filing an
erroneous refund claim, and fraud.
Criminal penalties may be imposed for
willful failure to file, tax evasion, or making
a false statement. See Pub. 17 for details
on some of these penalties.

Access Your Online Account
(Individual Taxpayers Only)

Go to IRS.gov/account to securely access
information about your federal tax
account.
• View the amount you owe, pay online or
set up an online payment agreement.
• Access your tax records online.
• Review the past 24 months of your
payment history.
• Go to IRS.gov/secureaccess to review
the required identity authentication
process.

How To Get Tax Help

If you have questions about a tax issue,
need help preparing your tax return, or
want to download free publications, forms,
or instructions, go to IRS.gov and find
resources that can help you right away.
Preparing and filing your tax return.
After receiving all your wage and earnings
statements (Form W-2, W-2G, 1099-R,
1099-MISC, 1099-NEC, etc.);
unemployment compensation statements
(by mail or in a digital format) or other
government payment statements (Form
1099-G); and interest, dividend, and
retirement statements from banks and
investment firms (Forms 1099), you have
several options to choose from to prepare
and file your tax return. You can prepare
the tax return yourself, see if you qualify
Instructions for Form 1040-SS (2020)

Getting answers to your tax
questions. On IRS.gov, get
answers to your tax questions
anytime, anywhere.

• Go to IRS.gov/Help for a variety of tools
that will help you get answers to some of
the common tax questions.
• Go to IRS.gov/ITA for the Interactive
Tax Assistant, a tool that will ask you
questions on a number of tax law topics
and provide answers. You can print the
entire interview and the final response for
your records.
• Go to IRS.gov/Pub17 to get Pub. 17,
Your Federal Income Tax for Individuals,
which features details on tax-saving
opportunities, 2020 tax changes, and
thousands of interactive links to help you
find answers to your questions. View it
online in HTML, as a PDF, or download it
to your mobile device as an eBook
Coronavirus. Go to IRS.govCoronavirus
for links to information on the impact of the
coronavirus, as well as tax relief available
for individuals and families, small and
large businesses, and tax-exempt
organizations.

-15-

Tax reform. Tax reform legislation affects
individuals, businesses, and tax-exempt
and government entities. Go to IRS.gov/
TaxReform for information and updates on
how this legislation affects your taxes.
Employers can register to use Business Services Online. The Social
Security Administration (SSA) offers
online service at SSA.gov/employer for
fast, free, and secure online W-2 filing
options to CPAs, accountants, enrolled
agents, and individuals who process Form
W-2, Wage and Tax Statement, and Form
W-2c, Corrected Wage and Tax
Statement.
IRS social media. Go to IRS.gov/
SocialMedia to see the various social
media tools the IRS uses to share the
latest information on tax changes, scam
alerts, initiatives, products, and services.
At the IRS, privacy and security are
paramount. We use these tools to share
public information with you. Don’t post
your SSN or other confidential information
on social media sites. Always protect your
identity when using any social networking
site.
The following IRS YouTube channels
provide short, informative videos on
various tax-related topics in English,
Spanish, and ASL.
• Youtube.com/irsvideos.
• Youtube.com/irsvideosmultilingua.
• Youtube.com/irsvideosASL.
Watching IRS videos. The IRS Video
portal (IRSVideos.gov) contains video and
audio presentations for individuals, small
businesses, and tax professionals.
Online tax information in other languages. You can find information on
IRS.gov/MyLanguage if English isn’t your
native language.
Free interpreter service. Multilingual
assistance, provided by the IRS, is
available at Taxpayer Assistance Centers
(TACs) and other IRS offices.
Over-the-phone interpreter service is
accessible in more than 350 languages.
Getting tax forms and publications.
Go to IRS.gov/Forms to view, download,
or print all of the forms and publications
you may need. You also can download
and view popular tax publications and
instructions (including the 1040
instructions) on mobile devices as an
eBook IRS.gov/eBooks. Or you can go to
IRS.gov/OrderForms to place an order
and have forms mailed to you within 10
business days.
Access your online account (individual
taxpayers only). Go to IRS.gov/Account
to securely access information about your
federal tax account.
• View the amount you owe, pay online,
or set up an online payment agreement.
• Access your tax records online.

• Review your payment history.
• Go to IRS.gov/SecureAccess to review

the required identity authentication
process.

Using direct deposit. The fastest way to
receive a tax refund is to file electronically
and choose direct deposit, which securely
and electronically transfers your refund
directly into your financial account. Direct
deposit also avoids the possibility that
your check could be lost, stolen, or
returned undeliverable to the IRS. Eight in
10 taxpayers use direct deposit to receive
their refunds. The IRS issues more than
90% of refunds in less than 21 days.
Getting a transcript of your return. The
quickest way to get a copy of your tax
transcript is to go to IRS.gov/Transcripts.
Click on either “Get Transcript Online” or
“Get Transcript by Mail” to order a free
copy of your transcript. If you prefer, you
can order your transcript by calling
800-908-9946.
Reporting and resolving your tax-related identity theft issues.
• Tax-related identity theft happens when
someone steals your personal information
to commit tax fraud. Your taxes can be
affected if your SSN is used to file a
fraudulent return or to claim a refund or
credit.
• The IRS doesn’t initiate contact with
taxpayers by email, text messages,
telephone calls, or social media channels
to request personal or financial
information. This includes requests for
personal identification numbers (PINs),
passwords, or similar information for credit
cards, banks, or other financial accounts.
• Go to IRS.gov/IdentityTheft, the IRS
Identity Theft Central webpage, for
information on identity theft and data
security protection for taxpayers, tax
professionals, and businesses. If your
SSN has been lost or stolen or you
suspect you’re a victim of tax-related
identity theft, you can learn what steps you
should take.
• Get an Identity Protection PIN (IP PIN).
IP PINs are six-digit numbers assigned to
eligible taxpayers to help prevent the
misuse of their SSNs on fraudulent federal
income tax returns. When you have an IP
PIN, it prevents someone else from filing a
tax return with your SSN. To learn more,
go to IRS.gov/IPPIN.
Checking on the status of your refund.
• Go to IRS.gov/Refunds.
• The IRS can’t issue refunds before
mid-February 2021 for returns that
claimed the EIC or the additional child tax
credit (ACTC). This applies to the entire
refund, not just the portion associated with
these credits
• Download the official IRS2Go app to
your mobile device to check your refund
status

• Call the automated refund hotline at
800-829-1954.
.
Making a tax payment. The IRS uses
the latest encryption technology to ensure
your electronic payments are safe and
secure. You can make electronic
payments online, by phone, and from a
mobile device using the IRS2Go app.
Paying electronically is quick, easy, and
faster than mailing in a check or money
order. Go to IRS.gov/Payments for
information on how to make a payment
using any of the following options.
• IRS Direct Pay: Pay your individual tax
bill or estimated tax payment directly from
your checking or savings account at no
cost to you.
• Debit or Credit Card: Choose an
approved payment processor to pay
online, by phone, or by mobile device.
• Electronic Funds Withdrawal: Offered
only when filing your federal taxes using
tax return preparation software or through
a tax professional.
• Electronic Federal Tax Payment
System: Best option for businesses.
Enrollment is required.
• Check or Money Order: Mail your
payment to the address listed on the
notice or instructions.
• Cash: You may be able to pay your
taxes with cash at a participating retail
store.
• Same-Day Wire: You may be able to do
same-day wire from your financial
institution. Contact your financial
institution for availability, cost, and cut-off
times.
What if I can’t pay now? Go to IRS.gov/
Payments for more information about your
options.
• Apply for an online payment agreement
(IRS.gov/OPA) to meet your tax obligation
in monthly installments if you can’t pay
your taxes in full today. Once you
complete the online process, you will
receive immediate notification of whether
your agreement has been approved.
• Use the Offer in Compromise PreQualifier to see if you can settle your tax
debt for less than the full amount you owe.
For more information on the Offer in
Compromise program, go to IRS.gov/OIC.
Filing an amended return. You can now
file Form 1040-X electronically with tax
filing software to amend 2019 Forms 1040
and 1040-SR. To do so, you must have
e-filed your original 2019 return. Amended
returns for all prior years must be mailed.
See Tips for taxpayers who need to file an
amended tax return and go to IRS.gov/
Form1040X for information and updates.
Checking the status of your amended
return. Go to IRS.gov/WMAR to track the
status of Form 1040-X amended returns.
Please note that it can take up to 3 weeks
from the date you filed your amended
-16-

return for it to show up in our system, and
processing it can take up to 16 weeks.
Understanding an IRS notice or letter
you’ve received. Go to IRS.gov/Notices
to find additional information about
responding to an IRS notice or letter.

Territory Resources

Addresses of walk-in sites in each territory
and other ways to get forms and
publications are listed below.

American Samoa
American Samoa Government
Tax Office
Executive Office Building
First Floor
Pago Pago, AS 96799
You can order forms and
publications by calling
684-633-4181.
You can order forms and
publications through the fax
684-633-1513.
CNMI
CNMI
Division of Revenue and Taxation
Dandan Commercial Center
P.O. Box 5234 CHRB
Saipan, MP 96950
You can order forms and
publications by calling
670-664-1000.
You can order forms and
publications through the fax
670-664-1015.
You can get forms and
publications at Finance.gov.mp/
forms.html.
Guam
Department of Revenue and
Taxation
Taxpayer Services Division
P.O. Box 23607
GMF, Guam 96921
You can order forms and
publications by calling
671-635-1840 or 671-635-1841.
You can order forms and
publications through the fax
671-633-2643.
You can get forms and
publications at Guamtax.com.
Puerto Rico

Instructions for Form 1040-SS (2020)

U.S. Internal Revenue Service
48 Carr 165 km.1.2
City View Plaza II Bldg.
Guaynabo, PR 00968-8000
See How To Get Tax Help and Getting
tax forms and publications, earlier.
USVI
U.S. Internal Revenue Service
Ron De Lugo Federal Building and
Courthouse
5500 Veterans Drive, Room 216
Charlotte Amalie, VI 00802
See How To Get Tax Help and Getting
tax forms and publications, earlier.
USVI Bureau of Internal Revenue
6115 Estate Smith Bay
Suite 225
St. Thomas, VI 00802
You can order forms and
publications by calling
340-715-1040.
You can order forms and
publications through the fax
340-774-2672.

How Can You Learn About Your
Taxpayer Rights?
The Taxpayer Bill of Rights describes 10
basic rights that all taxpayers have when
dealing with the IRS. Go to
TaxpayerAdvocate.IRS.gov to help you
understand what these rights mean to you
and how they apply. These are your
rights. Know them. Use them.

What Can TAS Do For You?
TAS can help you resolve problems that
you can’t resolve with the IRS. And their
service is free. If you qualify for their
assistance, you will be assigned to one
advocate who will work with you
throughout the process and will do
everything possible to resolve your issue.
TAS can help you if:
• Your problem is causing financial
difficulty for you, your family, or your
business;
• You face (or your business is facing) an
immediate threat of adverse action; or
• You’ve tried repeatedly to contact the
IRS but no one has responded, or the IRS
hasn’t responded by the date promised.

How Can You Reach TAS?

You can order forms and
publications by calling
340-773-1040.

TAS has offices in every state, the District
of Columbia, and Puerto Rico. Your local
advocate’s number is in your local
directory and at
TaxpayerAdvocate.IRS.gov/Contact-Us.
You can also call them at 877-777-4778
and in:
• American Samoa, the CNMI, and
Guam: 808-566-2950 (in Hawaii);
• Puerto Rico, and USVI: 787-522-8600
for Spanish, and 787-522-8601 for English
(in Puerto Rico).

You can order forms and
publications through the fax
340-773-1006.

How Else Does TAS Help
Taxpayers?

You can get forms and
publications at the Virgin Islands
Bureau of Internal Revenue.

TAS works to resolve large-scale
problems that affect many taxpayers. If
you know of one of these broad issues,
please report it to them at IRS.gov/SAMS.

You can get forms and
publications at the Virgin Islands
Bureau of Internal Revenue.
USVI Bureau of Internal Revenue
4008 Estate Diamond–Plot 7-B
Christiansted, VI 00820–4421

Note. The addresses are subject to
change.

The Taxpayer Advocate Service
(TAS) Is Here To Help You
What is TAS?
TAS is an independent organization within
the IRS that helps taxpayers and protects
taxpayer rights. Their job is to ensure that
every taxpayer is treated fairly and that
you know and understand your rights
under the Taxpayer Bill of Rights.

Instructions for Form 1040-SS (2020)

TAS for Tax Professionals
TAS can provide a variety of information
for tax professionals, including tax law
updates and guidance, TAS programs,
and ways to let TAS know about systemic
problems you’ve seen in your practice.

Low Income Taxpayer Clinics
(LITCs)

LITCs are independent from the IRS.
LITCs represent individuals whose income
is below a certain level and need to
resolve tax problems with the IRS, such as
audits, appeals, and tax collection
disputes. In addition, clinics can provide
information about taxpayer rights and
-17-

responsibilities in different languages for
individuals who speak English as a
second language. Services are offered for
free or a small fee for eligible taxpayers.
To find a clinic near you, visit
TaxpayerAdvocate.IRS.gov/about/LITC or
see IRS Pub. 4134, Low Income Taxpayer
Clinic List.
Disclosure, Privacy Act, and Paperwork Reduction Act Notice. The IRS
Restructuring and Reform Act of 1998, the
Privacy Act of 1974, and Paperwork
Reduction Act of 1980 require that when
we ask you for information we must first
tell you our legal right to ask for the
information, why we are asking for it, and
how it will be used. We must also tell you
what could happen if we do not receive it
and whether your response is voluntary,
required to obtain a benefit, or mandatory
under the law.
This notice applies to all papers you file
with us, including this tax return. It also
applies to any questions we need to ask
you so we can complete, correct, or
process your return; figure your tax; and
collect tax, interest, or penalties.
Our legal right to ask for information is
sections 6001, 6011, and 7651 and their
regulations. They say that you must file a
return or statement with the IRS and pay
to the United States Treasury any tax for
which you are liable. Your response is
mandatory under these sections. Section
6109 requires you to provide your
identifying number on the return. This is so
we know who you are, and can process
your return and other papers. You must fill
in all parts of the tax form that apply to
you.
You aren't required to provide the
information requested on a form that is
subject to the Paperwork Reduction Act
unless the form displays a valid OMB
control number. Books or records relating
to a form or its instructions must be
retained as long as their contents may
become material in the administration of
any Internal Revenue law.
We ask for tax return information to
carry out the tax laws of the United States.
We need it to figure and collect the right
amount of tax.
If you do not file a return, do not
provide the information we ask for, or
provide fraudulent information, you may
be charged penalties. We may also have
to disallow any deductions shown on the
tax return. This could make the tax higher
or delay any refund, and the calculation of
your social security benefits may be
affected.
Generally, tax returns and return
information are confidential, as stated in
section 6103. However, section 6103
allows or requires the IRS to disclose or

give the information shown on your tax
return to others as described in the Code.
For example, we may disclose your tax
information to the SSA for use in
calculating your social security benefits; to
the Department of Justice, to enforce the
tax laws, both civil and criminal; and to
cities, states, the District of Columbia, and
U.S. commonwealths or possessions to
carry out their tax laws.
We may disclose your tax information
to other persons as necessary to obtain
information needed to determine the
amount of or to collect the tax you owe.
We may disclose your tax information to
the Comptroller General of the United
States to permit the Comptroller General
to review the Internal Revenue Service.
We may disclose your tax information to
Committees of Congress; federal, state,
and local child support agencies; and to
other federal agencies for the purposes of
determining entitlement for benefits or the

eligibility for and the repayment of loans.
We may also disclose this information to
other countries under a tax treaty, or to
federal and state agencies to enforce
federal nontax criminal laws, or to federal
law enforcement and intelligence
agencies to combat terrorism.
Keep this notice with your records. It
may help you if we ask you for other
information. If you have questions about
the rules for filing and giving information,
call or visit any IRS office.
The time needed to complete and file
this form will vary depending on individual
circumstances. The estimated average
time is:
Recordkeeping . . . . . . .
Learning about the law or
the form . . . . . . . . . . .
Preparing the form . . . . .
Copying, assembling, and
sending the form to the
IRS . . . . . . . . . . . . . .

-18-

. .

5 hr., 27 min.

. .
. .

1 hr., 11 min.
4hr., 1 min.

. .

1 hr., 16 min.

If you have comments concerning the
accuracy of these time estimates or
suggestions for making this form simpler,
we would be happy to hear from you. You
can send us comments from IRS.gov/
FormComments. You can write to the
Internal Revenue Service, Tax Forms and
Publications, 1111 Constitution Ave. NW,
IR-6526, Washington, DC 20224. Do not
send the form to this address. Instead, see
Where To File in the General Instructions,
earlier.
Although we can't respond individually
to each comment received, we do
appreciate your feedback and will
consider your comments as we revise our
tax products. We can't answer tax
questions sent to the above address.

Instructions for Form 1040-SS (2020)