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marthamck
New Member

The amount calculated as 1/2 self-employment tax deduction was not carried over to my 1040, why?

Turbo Tax shows a one-half self-employment tax deduction on schedule SE, however it did not reduce my self-employment tax on form 1040.  Why is that?  

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KrisD
Intuit Alumni

The amount calculated as 1/2 self-employment tax deduction was not carried over to my 1040, why?

You pay the full amount of self-employment tax, but you get a deduction against your taxable income for half. 

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3 Replies

The amount calculated as 1/2 self-employment tax deduction was not carried over to my 1040, why?

You're correct, it does not reduce self employment tax...it reduces income.  You should see it on Line 27 of Schedule 1
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KrisD
Intuit Alumni

The amount calculated as 1/2 self-employment tax deduction was not carried over to my 1040, why?

You pay the full amount of self-employment tax, but you get a deduction against your taxable income for half. 

The amount calculated as 1/2 self-employment tax deduction was not carried over to my 1040, why?

Why isn't it reducing the income?  I am reviewing the tax return 1040 and although I see Schedule 1 reporting the health insurance and the 1/2 of SE tax, it does not compute it on the tax return. 

 

Is schedule 1 part of the itemeized return?  That doesn't make sense?

We show only $ 936 Taxable income with $$6438 of income adjustment on Schedule 1 but it doesn't reduce the taxable income nor the $1668 in SE tax.

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