DianeC958
Expert Alumni

Business & farm

You determine this number by taking the amount you received on the 1099-PATR and dividing it by the total amount of revenue you received.  This will give you a percentage.  Take the net income and multiply the net income by this percentage.  This is the amount of net income that is allocable to the qualified payment.

 

For example you have $10,000 in income from 1099-PATR and $30,000 in other income.

Take $10,000/ $40,000 = .25.  If you net income is $20,000, take the $20,000 x .25 equals $5,000.  This is the amount of net income that is allocable to the qualified payment.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post