Using Turbo Tax for Business, form 1065 and K-1s. Our 2 member LLC owns a mortgage note and only pays income taxes on the interest paid in on the loan. Normally that is the only income it receives. However this year I had to charge late fees on past due payments. I as managing member put the money to myself as compensation for dealing with the extra book work, bounced checks etc.
In Turbo Tax I filled in the LLC's interest income and also $170 in the "All Other income" category and gave it a label of late fees. At the end of the Turbo Tax return process it asked me if I needed to do the SE tax worksheet. So not knowing any threshold amounts I ran it.
Turbo Tax then asked me for the SE income amount which I was a bit surprised it did not know that having my previously entered the 170 in "other income".
So anyhow the SE Earning Worksheet showed I had Self Employment earning of $16 when pitted against the LLC's expenses. And on my K-1 (for the managing Member) it showed in Box 14 A the $16 and in Box 14 C $85. And nothing in Box 14 for the non-active member as correctly should not be. Won't know till I do my personal taxes about the SE tax but have two questions now.
(1) Is there a minimum threshold amount of SE income that you don't have to pay SE tax or do you always pay it no matter how small?
(2) Why does TB want me to enter that amount when I already gave it under All Other income? I'm wondering if it even knows I'm talking about the same $170?
(3) Also I assume since I don't use the nonfarm optional method that Box 14 C does not apply to my scenario?
