Question

Self Employment Tax being taken in excess of W-2 Wage Social Security Tax Maximum reached

Forum|Forum|6 years ago
May 26, 2020
1 reply
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How can one turn off the Turbo Tax calculation (or avoid the tax being calculated from a K-1) of Self Employment tax on the 1040? I have maximized the Social Security wages for Year 2019 and also own an LLC of which I get a K-1. Turbo Tax 1040 auto calculates a Self Employment tax for material participants in their businesses. Is there a way to prevent this SE tax calculation and if computed a way to have the SE tax refunded.

Thank you,

HD Full Dresser

DavidS127

Enter your K-1 into TurboTax using the Step-by-Step interview, and TurboTax will take into account that the maximum combined wages and net earnings for the Social Security tax portion of your Self-Employment Tax is $132,900 (in 2019).

Click the "magnifying glass Search" icon on the top row, enter "k-1" in the search window and press return or enter, and then click on the "Jump to k-1" link to begin entry of the Schedule K-1 from your LLC.

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