Why does K-1 show self employment tax?

[Vanessa A]

Where do you see self-employment tax on your K-1?

Your K-1 should not show self-employment tax.  It does show self-employment earnings on line 14.  The taxes are calculated on your personal form 1040 and Schedule SE. 

[JL Johnsonnnnn]

I am preparing a simple Form 1065 for the first time.  I entered total income $2,965 on line 8.  Total deductions $1300 on line 20.  Line 22 ordinary business income $1665.

When I get to the the Schedule K-1 Turbo tax inserts on Line 14, Self-employment,  C and $1,482.

Since there are two Schedule K-1s I would have thought the Business income of $1,665 would be placed on Line 1 of Schedule K1.   The Form 1065 has nothing on Line 1

[JL Johnsonnnnn]

Correction....the Schedule K-1 Line 1 has nothing on it.

[JL Johnsonnnnn]

Ok I am re-reading the posted answer.   So the business income from the 1065 is reflected on the Schedule K-1 in the form of self employment earnings?

[JohnB5677]

That is correct.  You can see the posting if you go to:

1. On the menu bar on the left that shows.
   1. My Info
   2. Federal
   3. State
   4. Review
   5. File
2. Select Tax Tools
3. On the drop-down select Tools
4. On the popup menu
5. Select View Tax Summary
6. On the left sidebar
7. Select Preview my 1040.
8. To return to the entry screens press Back on the sidebar.

On your 1040 it will be posted to Line 8 that is carried forward from Schedule 1.

If you continue to scroll past the 1040 you will see Schedule 1.

The K-1 is posted to line 3.

Line 3 is included in a total on line 10.

This is the number that carries to your 1040 and is subject to self-employment tax.

[JL Johnsonnnnn]

I'm having a difficult time understanding where in Turbo Tax you enter the income for a 1099 NEC I am on the income section and no where does it tell you.

[JL Johnsonnnnn]

when using Turbo tax a partnership.

[JamesG1]

You are entering a 1099-NEC as income into TurboTax Business reporting a partnership tax return.

• Across the top of the page, select Federal Taxes.
• Select Income.
• Under Business Income, select Start / Update to the right of Service receipts.

You may report individual form 1099-NEC's by creating individual Receipts or sales categories.

However, you may also report sales receipts from your profit and loss statement and not report individual 1099-NEC's.  

As an example, your profit and loss reports:

• Receipts of $200,000 which includes  
• one 1099-NEC for $10,000.

You may create one line for the $10,000 1099-NEC and a second line for the remaining Receipts of $190,000.

Or you may create one line for the Receipts of $200,000.

In either case, retain the 1099-NEC form with your tax records.

@JL Johnsonnnnn