Schedule K-1 Income Reported on 1040-SE

[rogersja89]

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)

[Anonymous_ · Accepted solution]

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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?

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No. Your earnings from self-employment should appear on Line 14 of your K-1s.

TurboTax will then calculate the tax on Schedule SE.

[melbeaches]

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?

[Anonymous_]

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@melbeaches wrote:

The net profit from the LLC is only $432.  Is there any reason why the Schedule SE is not automatically done?

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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]

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

[Mitzy20]

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,

[Mitzy20]

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?????

[Critter-3]

Answered on the other thread you posted to :  https://ttlc.intuit.com/community/user/viewprofilepage/user-id/4586260