Line 14a of the Schedule K is the sum of Self-Employment earnings for all partners.
- General partners or LLC managers- self-employment earnings include their share of all income as well as manual self-employment income adjustments.
- Limited partners- self-employment earnings consist only of guaranteed payments.
Lacerte computes line 14a using the Worksheet for Figuring Net Earnings (Loss) From Self-Employment from page 41 of the 1065 form instructions.
To generate Lacerte's version of the Self-Employment worksheet:
- Click on Settings.
- Click on Options.
- Select the Tax Return tab.
- Scroll down to the Federal Tax Options section.
- Locate the Self-Employment Worksheet option.
- Select Yes from drop down menu.
See Understanding Schedule K-1 self-employment income for partners and LLC members for more information on amounts included in self-employment income for partners and LLC members.