K-1 line 14 C Gross Non-farm Income transferred to form SE

[RobertF73]

TurboTax Deluxe seems to be using a figure from K-1 line 14 (C Gross Non-farm Income) to generate a Self-Employment form with Social Security tax due. However, the LLC had a net operating loss (shown on K-1 line 14 [A Net earnings/loss from self-employment]. Thus, there should be no Social Security tax due for this LLC. There seems to be a calculation error in the program.

[ThomasM125]

You need to make sure when you entered the self-employment earnings in line 14, that you put a negative (-) sign in front of the number, to designate it as a loss.

[AmeliesUncle]

The program should have asked if you want to use the "optional" method.  I suspect you accidently said "yes", which is why it is doing that.

Although it is not common, there definitely are some situations where the "optional" method and paying some SE tax is a good idea.