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mhawash
Returning Member

Why are my social security tax reporting as zero

I've used TT for many years as a self employed business and TT reported Social Security taxes properly.  However, for 2020, 2021 and 2022, the amount in Schedule SE 8c is empty and there is no form 8919 in the reported packet.  What am I doing wrong here?

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DawnC
Employee Tax Expert
Intuit Approved! This answer has been verified for accuracy by an Intuit expert employee

Why are my social security tax reporting as zero

The S-corp. that paid you should have issued you a W-2 and paid the related payroll taxes.   Then the S-corp. issues you a K-1 to enter on your personal tax return.   You need TurboTax Business to file a tax return for an S-corp.    

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9 Replies
Vanessa A
Employee Tax Expert

Why are my social security tax reporting as zero

Do you have anything on line 12 of Schedule SE?  If you have been self-employed on your own form 8919 does not apply to you. 

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mhawash
Returning Member

Why are my social security tax reporting as zero

For 2022, Schedule SE, line 12 has a value of 8341.  I had called Social Security Administration to see why my SS is zero, the person asked me about Schedule SE line 8c which is empty here.  She said that's the number they use.

ThomasM125
Expert Alumni

Why are my social security tax reporting as zero

Line 12 of schedule SE would be your self-employment tax from self-employment work. It is reported correctly. The person as the social security administration is wrong or perhaps misunderstood. Line 8(c) would only apply if you were being paid as a subcontractor but you should have been paid as a salary worker. That would not apply to your situation here.

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mhawash
Returning Member

Why are my social security tax reporting as zero

Hmm.  I will call them again.

I have a small business (S-Corp) and I filed the taxes for it in March.  For that, I had a net profit of 59K and the rest was issued on Sch K1.  For Long form Sch SE, the net income is on line 2 which results in SE tax on line 12 of $8341.  Is this what the SSA supposed to use for my SSA tax withholding?

AliciaP1
Expert Alumni

Why are my social security tax reporting as zero

No, your S-Corp income is not subject to SE tax.  You should be paying yourself a reasonable salary from your S-Corp though and that is where your SS tax withholding should be taken from .

 

See Should I pay myself a salary as an S-corp owner? for more details.

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mhawash
Returning Member

Why are my social security tax reporting as zero

I am paying myself a salary of 90K but do not usually issue a W2.  I reported that on Sch C line 1 and line 7. That was reduced by expenses down to 59K of net profit on line 31.  Line 31 is the number in Schedule SE.  How do I go from Sch C to SE and have SS taxes accounted for?

DawnC
Employee Tax Expert
Intuit Approved! This answer has been verified for accuracy by an Intuit expert employee

Why are my social security tax reporting as zero

The S-corp. that paid you should have issued you a W-2 and paid the related payroll taxes.   Then the S-corp. issues you a K-1 to enter on your personal tax return.   You need TurboTax Business to file a tax return for an S-corp.    

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mhawash
Returning Member

Why are my social security tax reporting as zero

I've never issued myself a W-2 and have already filed my 1120S for the business.  Before 2020 taxes, TT used the Short form of Sch SE and since 2020 has used the long form. That's when this issue started.  On Sch SE, 

Line 10: is the 12.4 % SS tax, and Line 11: is the 2.9% Medicare Tax for Self-employed.  Both have numbers and total 8341.  My understanding that this should somehow be reported to SSA since I am paying it here.  But why doesn't the SSA know how to pick those numbers?

KrisD15
Expert Alumni

Why are my social security tax reporting as zero

You are talking about two VERY DIFFERENT types of business entities, an S-Corp and a Sole-Proprietor. 

 

S-Corp is a Corporation, separate from you, however the income and expenses passes through the corporation to the shareholders where the shareholders (and often there is only ONE Shareholder)  pays the INCOME tax, unlike a C-Corp which pays its own income tax, then pays dividends to the shareholders.

 

C-Corp's pay employees. Employers collect and submit FICA (Social Security) taxes. 

FICA tax funds employees Social Security Accounts. 

Shareholders DO NOT PAY FICA TAX.

 

Sole-Proprietors file Schedule C to report their income and expenses, and pay the FICA  tax (both halves) through the Self-Employment tax on Schedule C and get a credit for paying the "Employer's" half.

 

If the income is earned by the S-Corp, and the S-Corp is not issuing a W-2, your FICA tax is not being paid. 

 

If you somehow report Self-Employment on Schedule C, you can pay FICA tax that way, but income from a K-1 will not flow to Schedule C, so how are you entering income on your Schedule C? 

 

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