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Why do you think it should only be a portion?
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Yes. Other software I used it was easy to allocate how much is self employed earnings. This return I used the allocation boxes and it still leaves the full net income and considers it as all self employment. Client took guaranteed payments and that will flow to their personal return as self employed income, remainder is net profit.
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Unless the person is a Limited Partner, the profit in Box 1 is all self employment income.
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In the screen for Partner Information. Which box did you check? General Partner / LLC Manager?
Answers are easy. Questions are hard!
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What about when the partner is a foreigner?? I believe this partner should not be subject to self employment tax.
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I found the answer to my question. the PTO was not calculating the proper Self Employment tax for the citizen partner nor for the foreign partner. There was a loss coming from another partnership where this partnership had a 50% interest. I did enter the ordinary loss from that other partnership under Sch K, "Passthrough K-1's but had forgotten to enter the same loss as a Self Employment tax loss on line 14(A). Since I had not entered this loss under line 14(A), the Self employment tax income on the Sch K of the main 1065 was calculating a higher possitive amount than the income amount on line 1 of Sch K.
Once I entered the SE Tax loss amount, it resolved the issue.