Business K1 Partnership

[asterof]

So what is the difference in Box1 of the K1  and Box 14

Box 1 is the profit the business made and Box 14 is the Self Employment Earnings

Now If my business made 44,100 (my earnings) and the Self Employment Earning was

44,100 if I put both of those in the K1 Section of my personnel it seems to double tax me

The business is a consulting where the money that comes in is my pay

So how do I enter this in the personnel tax. If the business made 44,100 all of that went to my salary

[Mike9241]

You pay income taxes on the box 1 amount. you pay self-employment taxes on the box 14 amount.

Self-employment taxes (in effect social security and medicare taxes) are in addition to the regular income taxes.

for illustration purposes only!

if you were in the 22% income tax bracket you would pay about $9,000 in income taxes on $41,000 ($44,100 less 1/2 the self-employment taxes of $3,100)   and about $6200 in self-employment taxes $44,100 times 92.35% times times 15.3%

look at tax form Schedule SE for the actual computation of your self-employment taxes. 

[jtax]

It should not be double taxing you. Be sure you have indicated code A in box 14 (if that is what the K1 says).

TT will send the box 1 amount to Schedule E, Part II to be included in Schedule 1 line 5 and flow to 1040 line 8.  Ordinary income.

The box 14 amount will flow to Schedule SE and you will not be paying income tax on that but rather self-employment tax (social security and Medicare).

You can view this is forms mode using TT desktop computer software or preview the PDF forms in the cloud version to verify it is all being done right.

If after review you still see double taxation, let us know the form and line numbers you see the extra income and maybe we can figure it out.

[ddahlman]

The problem was when I did the business taxs I did not put the 44100 as guaranteed payments that was actually my income, so the business taxs  were showing a business income of 44100 and a self employment income of 44100 when in reality the business income was the self employment income. Then when I entered those values into my personal taxs it did thought my income was 88200.