Solved: Schedule K-1 Income Reported on 1040-SE
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rogersja89
Level 1

Schedule K-1 Income Reported on 1040-SE

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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Accepted Solutions
tagteam
Level 15

Schedule K-1 Income Reported on 1040-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.

View solution in original post

4 Replies
tagteam
Level 15

Schedule K-1 Income Reported on 1040-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.

View solution in original post

melbeaches
New Member

Schedule K-1 Income Reported on 1040-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?

 

 

tagteam
Level 15

Schedule K-1 Income Reported on 1040-SE


@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.

melbeaches
New Member

Schedule K-1 Income Reported on 1040-SE

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

 

 

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