Question

Have negative $7,000/loss on my 2018 return but still showing $5,500 Fed Taxes owed-What am I missing?

Forum|Forum|6 years ago
February 2, 2020
1 reply
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Hi,

I am completing my personal 2018 taxes with Home and Business. After putting in income, business expenses and k-1 passthrough losses of $81,000, it is showing I lost $7,000 in income. However, it also shows $5,000 in Federal Income Taxes Owed...

How can I owe taxes on a loss? Am I not doing something right? Please help!

FS

A

AnnetteB6

If you had a profit on a Schedule C business, which was offset by your pass through losses, you would still owe self-employment taxes on that Schedule C profit.

For 2018, look at your return to see if Schedule 4 has been included. Self-employment tax is shown on line 57 of 2018 Form 1040 Schedule 4. There will also be a Schedule SE included as part of your return.

(If you are preparing your 2019 return, self-employment tax is shown on line 4 of 2019 Form 1040 Schedule 2.)

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W

whatthehell70Author

Hi,

Thanks for replying. I have a k-1 with a loss of $83,000 that are supposed to pass through to my personal taxes because I helped operate the business..but I am not seeing those losses reflected anywhere...or am I only supposed to get credit for a part of those losses?

Thanks for your help:)