topic Social Security Tax Paid as Single Proprietor LLC in Deductions & credits

Social Security Tax Paid as Single Proprietor LLC

Rob Tu — Sat, 06 Mar 2021 18:30:08 GMT

as a single proprietor LLC, I paid (via estimated taxes) 12.4% (6.2% rate times 2) to cover the social security taxes owed. I'm trying to determine where on Schedule C or my 1040 do I get credit for 50% of the social security that I paid since I have no employees.

Thanks

Rob

Re: Social Security Tax Paid as Single Proprietor LLC

Anonymous_ — Sat, 06 Mar 2021 18:36:20 GMT

That one-half is deducted on Schedule SE and then carried over to Schedule 1 of your 1040.

If you are using TurboTax Self-Employed or Home & Business, the program will handle the calculation and entry for you.

Re: Social Security Tax Paid as Single Proprietor LLC

TomD8 — Sat, 06 Mar 2021 18:37:17 GMT

Line 14 of Schedule 1 shows the deductible portion of your SE tax.

https://www.irs.gov/pub/irs-pdf/f1040s1.pdf

Re: Social Security Tax Paid as Single Proprietor LLC

Rob Tu — Sat, 06 Mar 2021 18:44:07 GMT

thank you very much. Do you know how/where I'd enter that in Turbo Tax?

Re: Social Security Tax Paid as Single Proprietor LLC

Anonymous_ — Sat, 06 Mar 2021 19:56:31 GMT

@Rob Tu wrote:

thank you very much. Do you know how/where I'd enter that in Turbo Tax?

When you enter business income in the Business Income and Expenses section of TurboTax, the program will calculate the SE tax (and one-half deduction) for you and the figures will be entered on the related schedules.

Re: Social Security Tax Paid as Single Proprietor LLC

Rob Tu — Sat, 06 Mar 2021 20:10:09 GMT

thank you. Do you know why the credit isn't 6.2% of the LLC income? It's considerably less. I paid estimated tax of 12.4% on the estimated income a the time and was thinking I'd get 50% of that amount back