Reply to 1st post on Supplemental Schedule for Line 21
Quote:
Originally Posted by
David Merrill
Here is an example of the supporting schedule for the 1040 Form.
Forgive me I thought I replied to this attaching the supplemental schedule for Line 21. I am still navigating this site.
I see from this example that there is a 1099-Misc listed and it appears the total amount was redeemed in lawful money and thus, has been taken on line 21 as a reduction on form 1040. USUALLY 1099-Misc requires a Schedule C and Schedule SE for the SS and Medicare taxes. My question is did this suitor simply by-pass the Schedule C and Schedule SE by placing this line 21 [this would not make sense since he would need to show the income in order to receive the deduction] OR, as I am guessing this, he put the income on Schedule C showing income on L12 and did Schedule SE and in the "other taxes" section INCLUDED the SS and Medicare taxes and he paid them? In other words, Did he pay the 15.3% FICA taxes regardless of the LM reduction [presuming he had no tax liability on L46]?
L21 is a reduction of taxes. L56 is after the tax liability and these are additional taxes due and have nothing to do with anything above L46.
I also do not understand how anything but the net pay after all deductions were taken as LM since the employer held the FIT, Med, SC, SS and it is not likely the employer submitted said tax withholdings as LM? I see the next comment brings this matter up. How did this suitor wind up?
Something does not seem correct. If I am missing something, please forgive me and provide an answer. thanks