K-1 income determination for self-employment tax

[Jakyasar]

Hi

Looking at a 2018 k-1 for a takeover plan (partnership and each partner is making the same amount). I am not sure if I am providing enough information but something does not seem right, at least to me.

K-1 line 14 is 125,000 (same as line 1 - ordinary business income)

Partner pension deduction is 25,000

Partner employee portion deduction is 1,000

Partner health insurance deduction 15,000

The amount subject to self employment tax was calculated based on 85,000 (125k less 25k less 15k)

My approach to calculate the amount subject to self employment tax would be 124,000 (125k less1k - employee portion)

What am I missing here? Your comments are appreciated.

Thank you

[Bird]

I believe you are correct.  If you look at the Schedule SE and the 1040 it is pretty clear they are developed separately - neither the partner's pension deduction not the health insurance deduction are factors in the SE tax.