guaranteed payments

[user17708252295]

I have a partnership with guaranteed payments to their partners but also have a very significant loss on the partnership. They pmts are for services so they should be subject to SE tax even though there is a loss on the partnership or am I mistaken??

If I am correct, I have nothing flowing to my Schedule SE to pay the social security and medicare on the guaranteed pmts.

What do I need to do???

[ThomasM125]

You are correct, guaranteed payments for services are subject to self-employment taxes. They would be listed in box 4(a) on your K-1 schedule. If they are listed in box 4(b) as guaranteed payments for capital, they would not be subject to self-employment tax however. If your guaranteed payments are subject to self-employment tax, they should also be listed in box 14 on your K-1 schedule.  If your K-1 does not have the income listed in box 14, you can enter it to get the correct treatment of your guaranteed payments for self-employment tax purposes.