curt1
Level 4
12-16-2019
12:38 PM
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This Sch C client will have $170k in net self employment, so shouldn't the 2019 tax rate be approaching 15%? Other Sch C clients are working as expected. I tried removing the 2019 planner from the return, then re-did but it still doesn't calculate proper SE taxes. What gives?
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curt1
Level 4
12-16-2019
12:38 PM
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Now I got it. Both the taxpayer and spouse have wages in 2018. 2019 planner reflects TP with wages of $112k plus Sch C income of $170k. So, for SE tax, TP only needs to pay SS on $16k plus 2.9% on the $170k. Thanks for thawing my brain freeze!! 🙂
rbynaker
Level 13
12-16-2019
12:38 PM
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Great, thanks for posting back! I've done a bunch of 2019 projections in the 2018 software and I'm sure I just accepted the SE tax calc for most of them. So I'm happy to hear there isn't a bug! You do have to be careful to enter the 401(k) stuff in the W-2 section so that it will calculate SS wages correctly for determining SE tax.
curt1
Level 4
12-16-2019
12:38 PM
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Thanks again! Very relieved I don't have to tell my client his 2019 quarterlies were way too low. whew! Would be nice if Proseries showed the SE tax projection calc--even if only via cross reference.
rbynaker
Level 13
12-16-2019
12:38 PM
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I'll start with the easy one: Have you entered any W-2 wages for the self-employed person? (Or maybe entered the spouses W-2 in the taxpayer box?)