You'll need to sign in or create an account to connect with an expert.
if that was your total earned compensation for 2017, then it must be reduced by the deductible part of the SE (Self-Employment) tax which is 15.3% of your income. The deductible part would be half of that. That probably accounts for the excess.
See IRS Pub 590B "What Is Compensation?"
https://www.irs.gov/publications/p590a#en_US_2016_publink1000230355
Self-employment income.
If you are self-employed (a sole proprietor or a partner), compensation is the net earnings from your trade or business (provided your personal services are a material income-producing factor) reduced by the total of:
The deduction for contributions made on your behalf to retirement plans, and
The deduction allowed for the deductible part of your self-employment taxes.
if that was your total earned compensation for 2017, then it must be reduced by the deductible part of the SE (Self-Employment) tax which is 15.3% of your income. The deductible part would be half of that. That probably accounts for the excess.
See IRS Pub 590B "What Is Compensation?"
https://www.irs.gov/publications/p590a#en_US_2016_publink1000230355
Self-employment income.
If you are self-employed (a sole proprietor or a partner), compensation is the net earnings from your trade or business (provided your personal services are a material income-producing factor) reduced by the total of:
The deduction for contributions made on your behalf to retirement plans, and
The deduction allowed for the deductible part of your self-employment taxes.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
ghellerf
Level 2
40beach
Level 2
urb
New Member
rnh
New Member
Freakyfrogboyvintage
Returning Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.