Answers to your questions in order:
- You are correct!
- This interest should actually be reported on Schedule K line 4a - Interest Income (from banks). This should flow through to the same line on your K-1.
- If it is only a refund of withheld SS taxes, then you are correct. If any amount was previously considered part of the employer match of SS taxes, then it would technically be taxed as income (due to the fact that employer match SS taxes are deducted from income). To book this you should reduce your current year deduction by the employer portion of taxes from the refund. For example:
- Assume you got a $500 refund
- $250 was withheld from your paycheck - this amount is not taxable nor reportable by either the business or you
- $250 was classified as the employer match - this should then be credited to FICA tax for 2021
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