turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Raj87
Returning Member

I am not materially participating in a small business which I have with my partners. Why is Turbo tax calculating me to pay self employment tax

 
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
Vanessa A
Employee Tax Expert

I am not materially participating in a small business which I have with my partners. Why is Turbo tax calculating me to pay self employment tax

How are you entering the income?  Are you simply an investor?  Did you materially participate in prior years?  Is there a code in box 14?

 

If in box 14 there is a letter A, then this is saying your income is self-employment income.  Self-Employment income is subject to SE Taxes. To be self-employed, means you are employed and participating.  This would need to be changed on your K-1 in order for it not to be subject to SE Taxes. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question