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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.
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March 22, 2020
5:54 AM