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I have income as self employed and a loss from a LLC. It seems the Software does not deduct the loss from the income for calculating the self employment tax. Right?

Forum|Forum|7 years ago
June 1, 2019
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I have income from a Tennis Teaching business and get a a 1099-MISC. On the other hand I am a partner in a LLC which suffered a loss in the same year. The software seems not to deduct the loss from the self-employment tax, just from the regular income tax. Is that ok?

TurboTax Deluxe Windows

Best answer by AmandaR1

If your partnership loss is from schedule K-1 (1065) line 14 a, then it will offset your self-employment income on schedule SE line 2, see here: https://www.irs.gov/pub/irs-pdf/f1040sse.pdf

However, losses from other boxes on your schedule K-1 will not. Or, if you don't participate in the business or aren't at risk in the business, then the losses won't offset for self-employment tax.

A

AmandaR1

Employee

What box is schedule k-1 loss in? And code, if applicable.

A

AmandaR1Answer

Employee

If your partnership loss is from schedule K-1 (1065) line 14 a, then it will offset your self-employment income on schedule SE line 2, see here: https://www.irs.gov/pub/irs-pdf/f1040sse.pdf

However, losses from other boxes on your schedule K-1 will not. Or, if you don't participate in the business or aren't at risk in the business, then the losses won't offset for self-employment tax.