Question

On the 1040 SE tax form, should line 18 equal the same as line 4c?

Forum|Forum|5 years ago
February 19, 2021
2 replies
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TurboTax Deluxe Online

Line 4(c) on form 1040SE would include your net profit for the whole year. Line 18 is just the portion of profit from March 27 to December 31. So, the two amounts could be the same if you started your business after March 27, but otherwise they would normally not be the same.

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L

lucylg

Cannot determine income for first three months when reported by 1099s. What is work around?

Review shows errors. Cannot adjust.

KathrynG3

Line 18 is asking for the last 9 months and it is acceptable to allocate a fraction of the income from your 1099's if income was earned during that time.

No, Line 4c will be reduced by a portion of the social security and Medicare tax since it includes multiplying the income by 92.35%. Therefore, Line 18 is not the same as Line 4c. Line 18 is to be the income earned during the pandemic, March 27-December 31, 2020 and must be answered only to defer a portion of self-employment tax.