I"m a Notary filing a partnership return (1065). My Taxable Income is positive, lets say I have $40,000 of Revenue and $1,000 of Expenses for a Net Taxable Income of $25,000. Of the $40,000 of Revenue I have $30,000 of Notarial Income that is exempt from Self Employment taxes. When I enter my Self Employment adjustment amount of $30,000 that leaves ($5000) of Self Employment Income. Turbotax did not flag this but wanted to make sure I should leave the negative Self Employment income ($5000) as it is shown or if I should reduce my adjustment amount to zero out my net...ie show only $25,000 of Self Employment adjustment. One additional note, I do have another pass-thru business that will have positive Self Employment income. I"m not sure of the amount but the second business would benefit from the negative self employment amount (assuming they get netted when both businesses pass-thru to my personal return.
Am I good leaving the negative SE income alone?
Thanks
