Solved

form SE line 12

Forum|Forum|4 years ago
February 4, 2022
2 replies
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for some reason my K1 income is not showing up in the SE form (it did last year)

--the impact is I'm not paying any self-employment taxes

Did the law change regarding qualified income?

Did I select the incorrect income category?

The system is telling me I get a big refund and I know that not true

HELP

TurboTax Home & Biz Windows

Best answer by DavidD66

I prepared the K1 -- Business Turbo Tax

we have a consulting business (15 yrs at this point) 50/50% with my wife

have used TT 2018,19 -- now 2020

does it matter that one is the general and the other a regular partner?? the GP shows SE income the other no income

--the first problem I encountered was the partner share info did NOT transfer over from 2019

--three TT experts tried to fix it and all failed -- finally told me to reenter manually

Now the K1's are wrong -- any connection?

As you seem to be aware of, If you and your spouse are both partners, each of you must complete and file your own Schedule SE (Form 1040), Self-Employment Tax, to report your partnership net earnings (loss) from self-employment. You are both general partners (not necessarily the managing partner). If you indicate your wife is a limited partner, the software will not treat her share of income as self-employment income and will not generate a Schedule SE. In the business software you should indicate that your wife is a general partner so it will properly flow through to your personal return.

J

JulieS

No, there has not been a change in the rules around self-employment tax this year.

I am assuming you are referring to a Form 1065 partnership K-1?

If you have a positive number in box 14 of your K-1, that should flow to Schedule SE,

First I suggest checking your copy of the K-1 form. If you have a positive number there, but no SE tax, you should check the K-1 input to make sure it was entered correctly.

If the number is there and was entered correctly, please respond back to this thread and we can explore further.

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O

OldCarGuyAuthor

have checked everything -- no luck

pls suggest a plan

thanks

Jim

O

OldCarGuyAuthor

i have checked everything you suggested -- no luck

--pls follow up, thanks

Jim

D

DianeW777

Let's review the steps to the entry and if you are a general partner, your income will be subject to self employment tax, as it should be.

I also am assuming you are entering a Form 1065-K1 for your partnership share of income. Some questions are very important to determine whether the pass through income is subject to self employment tax.

You must check that you are a 'General Partner'
Describe the Partnership - None of these apply
Type of Activity - Business-Box 1
Did you Participate? - Yes
Box 1 = Income
Select Box 14
Code = A-Net Earnings (Loss) From Self Employment / Amount should equal box 1 or the amount from your K1
All of my investment in this activity is at risk - Check box if only you have investment in the business and/or loans you are responsible to repay. In other words your investment what is at risk, no money from parents or spouse that you are not liable for.