I am married filing jointly. We own an LLC together. (%50 each) We have already filed 1065, and have Schedule K-1's to report income on our 1040. We both need to report the Schedule K-1 income on Schedule-SE, as we are both active members of the LLC. So the question I have is: When I add Schedule K-1 income in TurboTax, does this automatically get added to Schedule-SE or do I have to manually add that income to Schedule SE by adding another line of work under the self-employed work summary? If I have to add it, then there doesn't seem to be a way to simply report the net profit from the Schedule K-1. (it prompts me to add total income and enter expenses - stuff that is already summed up in the 1065)
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@rogersja89 wrote:
....do I have to manually add that income to Schedule SE by adding another line of work under the self-employed work summary?
No. Your earnings from self-employment should appear on Line 14 of your K-1s.
TurboTax will then calculate the tax on Schedule SE.
@rogersja89 wrote:
....do I have to manually add that income to Schedule SE by adding another line of work under the self-employed work summary?
No. Your earnings from self-employment should appear on Line 14 of your K-1s.
TurboTax will then calculate the tax on Schedule SE.
I have an additional question. When I add the K1 to the 1040, turbo tax is showing the net earnings of the llc to my taxable income. turbo tax is not however, generating a schedule SE to calculate the self employment tax component. The net profit from the LLC is only $432. Is there any reason why the Schedule SE is not automatically done?
@melbeaches wrote:
The net profit from the LLC is only $432. Is there any reason why the Schedule SE is not automatically done?
You are exactly at the cut-off point. If you had more than $432 in self-employment earnings, Schedule SE would be generated.
With respect to a K-1 (1065), self-employment earnings are reported on Line 14.
Thank you.
I also played around with the K1, increasing the ordinary business income on line 1 to $1000, and entered that amount on my 1040. It did generate a schedule SE, and I see on there that income below $400 was not subject to SE tax.
Thanks for your help
Follow up question on Schedule SE.
Last year (2019) I had a small net loss on my LLC - I business I own but did not earn income thru. I had a net loss of -796 which were basically deductions for business expenses.
Last year my taxes were done by a CPA and Schedule SE was generated and it shows this loss.
This year (haven't filed yet ), I have the same situation - a small net loss thru the LLC. However, TT did not generate Schedule SE.
Can I assume this is OK and I do not need to file this form?
Thank you,
I meant to mention that TT did generate the Schedule C which shows the loss - but it didnt generate Schedule SE
That is my question - where's Schedule SE and do I need it?????
Answered on the other thread you posted to : https://ttlc.intuit.com/community/user/viewprofilepage/user-id/4586260
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