Things You'll Need:
- Completed Schedule C
- Completed F
- Schedule K-1
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Step 1
Enter any net farm loss or profit from line 36 of Schedule F and partnerships from line 14 of Schedule K-1 if you have any in line 1a. On line 1b, enter the amount of any disability or retirement benefits or any amounts on line 6b of Schedule F or any amounts listed on line 20 of Schedule K-1.
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Step 2
Enter the dollar amount from line 31 of Schedule C, line 3 of Schedule C-EZ, line 14 of Schedule K-1 or line 9 of Schedule K-1 on line 2 for your net loss or profit. Add lines 1a, b and 2 together and enter the amount on line 3.
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Step 3
Multiply line 3 by .9235. If the amount owed is less than $400, you don't have to file self-employment tax, if it is more than $400, enter the amount on line 4a. If the amount is less than $400, enter the amount from line 3. Complete lines 4b and 4c.
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Step 4
Enter any W-2 income if you were a church employee on line 5a. Multiply line 5a by .9235. If the amount is less than $100, enter zero on line 5b or enter the result after multiplying. Add line 4c and 5b. Enter that amount ob line 6.
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Step 5
Read line 7 and see the amount that is already entered. The amount on line 7 is $106,800.
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Step 6
Add line 3 and line 7 on the W-2 forms. Enter that amount on line 8a. If that amount is more than $106,800, stop and skip to line 11. Read line 8b, 8c and 8d and enter the amounts that apply.
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Step 7
Figure line 9 by subtracting 8d from 7. If the amount is zero, enter zero on line 10 and 9. Move to line 11. Multiply the smaller amount on line 6 or line 9 by .124 and enter the result on line 10. Multiply the amount on line 6 by .029 and enter the result on line 11. Add line 10 and line 11 together. Enter the result on line 12 and on line 56 of the 1040.
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Step 8
Multiply line 12 by .50. Enter the result on line 13 and line 27 of the 1040.
