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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 6181
Experience:  Extensive Experience with Tax, Financial & Estate Issues
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We have an LLC and my husband materially participated and

Customer Question

We have an LLC and my husband materially participated and received $6,000 in guaranteed payments. The Form 1065 and K-1s are complete for all partners. Does my husband have to include a Schedule C for the guaranteed payments?
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: I just need to know what to do with the guaranteed payments on our joint 1040 tax return.
JA: Is there anything else the Accountant should be aware of?
Customer: No, everything else is normal
JA: OK. Got it. I'm sending you to a secure page on JustAnswer so you can place the $5 fully-refundable deposit now. While you're filling out that form, I'll tell the Accountant about your situation and then connect you two.
Submitted: 9 months ago.
Category: Tax
Expert:  Stephen G. replied 9 months ago.

Is Box 14 on the Form 1065 K-1 completed?

Expert:  Stephen G. replied 9 months ago.

The guaranteed payments belong on Form 1040 Schedule E Column (j)

If you look at the references on the 2nd page of the K-1 for line 4 on page 1 you'll find the same reference:

"Guaranteed payments Schedule E, line 28, column (j)"

What remains is to determine if the "Guaranteed Payments" constitute "self-employment" income which should

be noted in Box 14 on Page 1 of the K-1.

Let me know if you have any additional questions.

Steve G.