Schedule C and F 8846 FICA Tips Credit

Forum|Forum|1 year ago
September 27, 2024
1 reply
12 views

1040 Schedule C line 26 wages weren't automatically reduced by the amount of the FICA tips credit that was calculated on F 8846.

The Sch C IRS instructions list other credits that should reduce wages, but F 8846 isn't listed.

Shouldn't the wages be reduced by the amount of the credit? Do I manually enter a negative amount on line 26 "Other Work Credits"? Or is PS treating this correctly?

ProSeries Professional

This topic has been closed for replies.

Best answer by david3

Sorry, read your question too fast 😊. Yes you need to reduce wages as amount of credit. Just list it on line 26 as other work credits ( don't use a negative number)

Thank you, Terry.

I found out that for Schedule C, the amount of payroll tax expense needs to be reduced by the amount of the credit.

T

Terry53029

Intuit Community Champion

Why do you want to take away a credit your client is eligible for ?

D

david3Author

Level 7

I didn't say I wanted to take away the credit. I was asking why PS didn't automatically adjust the related expense for the amount of the credit, as required by the IRS.

I found out that we have to manually reduce the payroll tax amount on Sch C by the amount of the credit.

It doesn't make sense that PS automatically makes the adjustment for 1065s and 1120S, but not Sch Cs.

T

Terry53029

Intuit Community Champion

Sorry, read your question too fast 😊. Yes you need to reduce wages as amount of credit. Just list it on line 26 as other work credits ( don't use a negative number)

Sign up

Login with SSO

Let's get you signed in

Login with SSO