Federal Individual 2010: Certain Self-Employed Customers with Multiple Business Activities May Need to Amend to Correct Self-Employment Tax
Due to late guidance from the IRS, the self-employment tax and one-half of self-employment tax deduction for certain customer with multiple business activities may no longer be correct.
TurboTax has been updated for this issue.
How to tell if you're impacted
You may be affected if ALL of the following are true:
- You filed your 2010 federal tax return prior to April 28, 2011 AND,
- Your federal return included an S corporation Schedule K-1 OR a Schedule C with statutory employee box checked or a Schedule C with approved 4361 application AND,
- You had a self-employed, health-insurance deduction related to one of the above activities AND,
- You had self-employment income from ANOTHER activity such as a second Schedule C, Schedule F or a Partnership K-1
If you are affected, both the self-employment tax (Form 1040, line 56) and the one-half self-employment tax deduction (Form 1040, line 27) may be understated on your federal tax return.