I'm a general partner in a partnership and entered my K-1 data - Box 1 income from business, and box 13 R for a SEP contribution. I believe that my box 1 income should incur self-employment tax, but nothing shows up on 1040 Schedule 4, and no Schedule SE is created in TT. I'm using TT Deluxe on a Mac (download, not online), and have triple checked that I've completed the K-1 interview and checked as general partner.
On top of that, it looks like my SEP contribution is not being treated as pre-tax. TT does create a Keogh/SEP worksheet and enters a single figure (Line 4b/c) for my contribution, but doesn't seem to do anything else with it. Am I missing something?
Thanks for any help you can give, this is driving me nuts!
This suggests that your Schedule K-1 (Form 1065) is missing the code A entry in box 14 that is necessary to report the amount of the income on the K-1 that is income from self-employment.
So if the K-1 is missing this data, we're entering and then it will carry to Schedule E to obtain the self-employment tax. What amount do you enter, the ordinary income or the net of the income less the unreimbursed expenses?
Please advise
@SSoph If the K-1 is missing the data, you need to go back to whoever prepared the Partnership return to correct it.
I have the same problem and I am using TurboTax Business to create the K-1. After entering the 1065 info my wife's K-1 shows a code A in box 14 with an amount. My K-1 shows nothing in box 14 so that's one mystery and I do not get presented with a hard you have to fill in Sched C.
In TT Business, I am asked IF i need to fill out a SE worksheet and does not offer clear instruction on what to enter. I assume it is our net profits but I am not sure.
Your issue most likely stems from how Schedule K-1 Part II box G is marked.
If this is marked as limited partner or other LLC member, then TT will not subject the earnings to SE at the 1065 level.
This is a long, complicated and technical issue that is well beyond the scope of a forum such as this.
You are dealing with two different situations:
If you are completing the 1065 and believe the earnings should be subject to SE and reported in box 14 code A, then you need to mark the box G as general partner or LLC member-manager.