A client has Schedule C that is passive.  I checked Sch. C question G re: material participation NO.  I reported the profit on Sch. SE Adjustments Worksheet Part II line 7 so it is not subject to SE tax.

The profit is being shown on Form 8960 Line 4a and again on Line 4b so it is not being subject to the NII tax.  I believe this is incorrect.  

I have called Tech Support 3 times and spent hours on the phone with them.  Issue has not been resolved.  

Is my thinking correct?  If so, did I not enter something somewhere?  Or, is the software wrong.

Thank you.