Can I still file Schedule SE even though income comes from a Schedule K1?

This is a follow up to a previous question.  We paid estimated self-employment taxes last year on our S-Corp income thinking that we would then file Schedule SE, not knowing that Schedule K1 income does not generate Schedule SE and that we should have paid ourselves a salary and withheld the taxes that way.  We are in the process of doing that for 2019, but wondering how I should address 2018.  I found that I can generate Schedule SE by entering the income under Other Tax Situations/Business Taxes/Self Employment Tax.  Would this satisfy the IRS, or should I be doing something different?

Answer

You need to file late payroll forms and a W-2.  Then amend the corporate return to show the W-2 wages.

This is just one of many reasons why a corporation REALLY should be done by a tax professional.

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