Do I Pay Self-Employment Taxes on Partnership Income - Line 14A of the K-1

For other videos covering self-employment tax issues, see our playlist:
• Self-Employed Taxes
In this video, we cover the circumstances when a partner in a partnership LLC must pay self-employment taxes on Line 1 ordinary income passing through on Schedule K-1.
- Does a partner pay SE taxes if they don't actively participate in the business?
- How should the LLC be reporting the earnings on Schedule K-1?
- Can the partner change the character of the income?
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[@charlescrane1272]

Great example. I also see the general partners have line 14 C self employment income, so what is that, what deductions are available for that income and where does it go on the other tax return forms?

[@Danmckenna912]

Thank you. Very informal and to the point. 👍 Now lets file for those deductions to offset the tax liabilities. 👍

[@JasonDKnott]

Exactly! Take all of the tax deductions you are legally able to claim!

[@user-qm5ue9xn5w]

Thank you. What is the difference between S corp and partnership (one partner is active, one is passive) in terms of tax savings?

[@mikas7796]

Love this video - thank you! Can general partners ever be passive in rare circumstances as long as they meet the irs guidance?

[@leonardmulrooney3806]

Thanks for explaining this

[@JasonDKnott]

You’re welcome! Thanks for watching

[@davejarvis5139]

I am really hoping that you still answer these comments. I am trying to file my 1040 and I evidently purchased some stock that I then resold with daytrading that paid me a dividend. Now I received a K-1 how do I report this?

[@nadinebock1343]

I have watched several of these videos and I understand the ordinary business income line 14 code a, but I’m confused about code c in line 14. I have researched and it states non farm income optional method and it is coming from the gross income of the partnership and allocated to the partners. Why is that included?