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DMC78
Returning Member

Unreimbursed Partnership Expenses Not Reflected on Schedule SE

I have entered unreimbursed partnership expenses (UPE) which correctly show up on Schedule E (Part II). However, on line 2 of Schedule SE, TT is taking the full amount of self employment income reported in box 14 of my K-1 without first subtracting UPE. Because UPE should reduce self-employment income this appears to be a mistake in the calculation on Schedule SE. How can I ensure that line 2 of Schedule SE properly accounts for UPE so that my self-employment taxes are calculated correctly? 

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2 Replies
ErnieS0
Expert Alumni

Unreimbursed Partnership Expenses Not Reflected on Schedule SE

TurboTax should subtract your unreimbursed partnership expenses and report your net partnership income on line 2 of Schedule SE,

 

You can made a manual adjustment on Schedule SE.

  1. Select the Other Tax Situations tab at the top
  2. Go to Business Taxes and Deductions
  3. START Self-Employment Tax
  4. Select Make Adjustments on Self-Employment Tax
  5. Enter your adjustment in Other SE NonFarm Profit (Loss)
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DMC78
Returning Member

Unreimbursed Partnership Expenses Not Reflected on Schedule SE

Thanks. Still not sure why the calculation wasn't done automatically, but the manual adjustment did the trick.

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