The instruction.
Comprehensive Problem 1 - Part 2: Schedule C, Schedule SE (page 1), Schedule D, Form 8949, and Qualified Dividends and Capital Gains Tax Worksheet
| Note: This problem is divided into three parts. You will need to complete some of the forms in the other parts in order to determine the amounts to be used on Form 1040. Some of the data information will be reproduced in the other parts for convenience. |
Enter all amounts as positive numbers, except for a "loss". If required, enter a "loss" as a negative number on the tax form. If an amount box does not require an entry or the answer is zero, enter "0". On Schedule SE, when required, round amounts to the nearest dollar. Use the rounded amounts in subsequent computations.
Information regarding Noah's pet store business is reproduced here. Noah's pet store is located at 1415 S. Patterson Blvd, Dayton, OH 45409. The name of the store is "The Arc," and its taxpayer identification number is 95-9876556. Since you handle Noah's bookkeeping, you have printed the income statement from your Quickbooks software, shown in the table below. The Arc did not claim the COVID-related provisions for the employee retention credit or sick and family leave credits but Noah did defer his self-employment taxes related to The Arc. He estimates 77.5 percent of the profits can be allocated to the period March 27, 2020 through December 31, 2020.
| The Arc 95-9876556 Income Statement For the Year Ended December 31, 2020 |
| Revenue: | | | |
| | Gross Sales | | $143,500.00 |
| | Less: Sales Returns and Allowances | | - |
| | Net Sales | | $143,500.00 |
| Cost of Goods Sold: | | |
| | Beginning Inventory | $10,250.00 | |
| | Add: Purchases | 62,150.00 | |
| | | $72,400.00 | |
| | Less: Ending Inventory | 10,000.00 | |
| | Cost of Goods Sold | | 62,400.00 |
| | Gross Profit (Loss) | | $81,100.00 |
| Expenses: | | |
| | Dues and Subscriptions | - | |
| | Estimated Federal Tax Payments | 7,500.00 | |
| | Estimated State Tax Payments | 3,800.00 | |
| | Insurance | 3,950.00 | |
| | Meals and Entertainment | 1,400.00 | |
| | Miscellaneous | - | |
| | Payroll Taxes | 3,830.00 | |
| | Professional Fees | 1,710.00 | |
| | Rent | 8,420.00 | |
| | Travel | 1,230.00 | |
| | Utilities | 1,250.00 | |
| | Vehicle Expenses | - | |
| | Wages | 25,110.00 | |
| | Total Expenses | | 58,200.00 |
| | Net Operating Income | | $22,900.00 |
| |
Detail of The Arc's meals and entertainment:
| $400 | Meals associated with business travel | | 300 | Arc employee holiday party | | 100 | Overtime meals for employees | | 600 | Sports tickets for entertaining large customers | | $1,400 | | |
A E F G H E No OMS NO. 1545-0074 SCHEDULE C Profit or Loss From Business (Form 1040) (Sole Proprietorship) 2020 Go to www.irs.gov/Schedule for instructions and the latest information. Department of the Treasury Attachment Attach to Form 1040, 1040-SR, 1040-NR, or 1041; partnerships generally Internal Revenue Service (99) must file Form 1065. Sequence No. 09 Name of proprietor Social security number (SSN) Noah Arc 434-11-3311 Principal business or profession, including product or service (see instructions) B Enter code from instructions Pet Store 453910 Business name. If no separate business name, leave blank. D Employer ID number (EIN) (see instr.) The Arc 959-87-6556 Business address (including suite or room no.) 1415 S. Patterson Blvd. City, town or post office, state, and ZIP code Dayton, OH 45409 Accounting method: (1) - Cash (2) - Accrual (3) - Other (specify) Did you "materially participate in the operation of this business during 2020? If "No," see instructions for limit on Yes No losses If you started or acquired this business during 2020, check here 1 Did you make any payments in 2020 that would require you to file Form(s) 1099? See instructions Yes If Yes," did you or will you file required Form(s) 1099?. Yes No Part I Income 1 Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you on Form W-2 and the Statutory employee" box on that form was checked. 143,500. 2 Returns and allowances. 3 Subtract line 2 from line 1 143,500. Cost of goods sold (from line 42).... 62,400.0 Gross profit. Subtract line 4 from line 3 81,100 6 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions). 7 Gross income. Add lines 5 and 6. 7 81,100 Part II Expenses. Enter expenses for business use of your home only on line 30. 8 Advertising 18 Office expense (see instructions). 9 Car and truck expenses (see 19 Pension and profit-sharing plans... instructions).. 20 Rent or lease (see instructions): .... 10 Commissions and fees...... a Vehicles, machinery, and equipment 20a 11 Contract labor (see instructions) b Other business property.... 20b 8,420.00 12 Depletion ......... 21 Repairs and maintenance ..... 13 Depreciation and section 179 22 Supplies (not included in Part III). expense deduction (not included 23 Taxes and licenses............ 23 3,830.00 1 2 3 4 4 5 5 6 8 18 19 9 10 11 12 21 22 24a 14 26 27a 28 29 in Part III) (see instructions) 13 24 Travel and meals: 14 Employee benefit programs a Travel .. 1,230.00 (other than on line 19)..... b Deductible meals (see 15 Insurance (other than health) 15 3,950.00 instructions) 24b 550 16 Interest (see instructions): 25 Utilities 25 1,250.00 a Mortgage (paid to banks, etc.) 1 26 Wages (less employment credits). 25,110.0 b Other.. 16b 27a Other expenses (from line 48) 17 Legal and professional services 17 1,710.00 b Reserved for future use 27b 28 Total expenses before expenses for business use of home. Add lines 8 through 27a. 46,050 29 Tentative profit or loss). Subtract line 28 from line 7.. 35,050 30 Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829 unless using the simplified method. See instructions. Simplified method filers only: Enter the total square footage of (a) your home: _and (b) the part of your home used for business! Use the Simplified Method Worksheet in the instructions to figure the amount to enter on line 30. 30 31 Net profit or loss). Subtract line 30 from line 29. If a profit, enter on both Schedule 1 (Form 1040), line 3, and on Schedule SE, line 2. (If you checked the box on line 1, see instructions). Estates and trusts, enter on Form 1041, line 3. 31 35,050 If a loss, you must go to line 32. 32 If you have a loss, check the box that describes your investment in this activity. See instructions. If you checked 32a, enter the loss on both Schedule 1 (Form 1040), line 3, and on Schedule SE, 32a All investment is at line 2. (If you checked the box on line 1, see the line 31 instructions). Estates and trusts, enter on risk. Form 1041, line 3. 32b - Some investment is If you checked 32b, you must attach Form 6198. Your loss may be limited. not at risk. For Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 11334P Schedule C (Form 1040) 2020 a Cost Schedule C (Form 1040) 2020 Noah Arc 434-11-3311 Page 2 Part III Cost of Goods Sold (see instructions) 33 Method(s) used to value closing inventory: b Lower of cost or market Other (attach explanation) 34 Was there any change in determining quantities, costs, or valuations between opening and closing inventory? If "Yes," attach explanation .. Yes 35 Inventory at beginning of year. If different from last year's closing inventory, attach explanation ... 35 10,250.0 36 Purchases less cost of items withdrawn for personal use 62,150.0 37 Cost of labor. Do not include any amounts paid to yourself. 37 No 36 Part III E No 35 36 37 38 39 40 Cost of Goods Sold (see instructions) 33 Method(s) used to value closing inventory: a Cost b Lower of cost or market Other (attach explanation) 34 Was there any change in determining quantities, costs, or valuations between opening and closing inventory? If "Yes," attach explanation ........ Yes 35 Inventory at beginning of year. If different from last year's closing inventory, attach explanation .... 10,250.0 36 Purchases less cost of items withdrawn for personal use .. 62,150.0 37 Cost of labor. Do not include any amounts paid to yourself. 38 Materials and supplies 39 Other costs.. 40 Add lines 35 through 39 72,400 41 Inventory at end of year 42 Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on line 4 . 62,400 Part IV Information on Your Vehicle. Complete this part only if you are daiming car or truck expenses on line 9 and are not required to file Form 4562 for this business. See the instructions for line 13 to find out if you must file Form 4562. 43 When did you place your vehicle in service for business purposes? (month/day/year) 44 Of the total number of miles you drove your vehicle during 2020, enter the number of miles you used your vehicle for: a Business b Commuting (see instructions) c Other 45 Was your vehicle available for personal use during off-duty hours? 46 Do you (or your spouse) have another vehicle available for personal use? Yes No 47a Do you have evidence to support your deduction?. Yes No b If "Yes," is the evidence written?. Other Expenses. List below business expenses not included on lines 8-26 or line 30. 41 10,000 42 Yes No Yes No Part V 48 Total other expenses. Enter here and on line 27a. 48 NR) SCHEDULE SE OMB No. 1545-0074 Self-Employment Tax (Form 1040) 2020 Department of the Treasury Go to www.irs.gov/ScheduleSE for instructions and the latest information. Attachment Internal Revenue Service (99) Attach to Form 1040, 1040-SR, or 1040-NR. Sequence No. 17 Name of person with self-employment income (as shown on Form 1040, 1040-SR, or 1040- Social security number of person with self-employment income 434-11-3311 Noah Arc Part I Self-Employment Tax Note: If your only income subject to self-employment tax is church employee income, see instructions for how to report your income and the definition of church employee income. A If you are a minister, member of a religious order, or Christian Science practitioner and you filed Form 4361, but you had $400 or more of other net earnings from self-employment, check here and continue with Part I. Skip lines la and 1b if you use the farm optional method in Part II. See instructions. 1a Net farm profit or loss) from Schedule F, line 34, and farm partnerships, Schedule K-1 (Form 1065), box 14, code A... b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve Program payments included on Schedule F, line 4b, or listed on Schedule K-1 (Form 1065), box 20, code AH 1b Skip line 2 if you use the nonfarm optional method in Part II. See instructions. Net profit or loss) from Schedule C, line 31; and Schedule K-1 (Form 1065), box 14, code A (other than farming). See instructions for other income to report or if you are a minister or member of a religious order 3 Combine lines 1a, 1b, and 2. 35,050 4a If line 3 is more than zero, multiply line 3 by 92.35% (0.9235). Otherwise, enter amount from line 3 32,369 Note: If line 4a is less than $400 due to Conservation Reserve Program payments on line 1b, see 1a 2 2 35,050 3 4a instructions. 4b 4c 143,500. Sa 5b 6 b If you elect one or both of the optional methods, enter the total of lines 15 and 17 here ........ c Combine lines 4a and 4b. If less than $400, stop; you don't owe self-employment tax. Exception: If less than $400 and you had church employee income, enter -C- and continue. 5a Enter your church employee income from Form W-2. See instructions for definition of church employee income ......... b Multiply line 5a by 92.35% (0.9235). If less than $100, enter -o- Add lines 4 and 5b Maximum amount of combined wages and self-employment earnings subject to social security tax or the 6.2% portion of the 7.65% railroad retirement (tier 1) tax for 2020 8a Total social security wages and tips (total of boxes 3 and 7 on Form(s) W-2) and railroad retirement (tier 1) compensation. If $137,700 or more, skip lines 8b through 10, and go to line 11..... b Unreported tips subject to social security tax from Form 4137, line 10. c Wages subject to social security tax from Form 8919, line 10....... 6 276,922 7 7 137,700 8a 8b 8c . Add lines and g/ d Add lines 8a, 8b, and 8c. 8d 9 10 11 12 13 Part II 9 Subtract line 8d from line 7. If zero or less, enter-O- here and on line 10 and go to line 11 10 Multiply the smaller of line 5 or line 9 by 12.4% (0.124). 11 Multiply line 6 by 2.9% (0.029).. 12 Self-employment tax. Add lines 10 and 11. Enter here and on Schedule 2 (Form 1040), line 4 13 Deduction for one-half of self-employment tax. Multiply line 12 by 50% (0.50). Enter here and on Schedule 1 (Form 1040), line 14 Optional Methods To Figure Net Earnings (see instructions) Farm Optional Method. You may use this method only if (a) your gross farm income wasn't more than $8,460, or (b) your net farm profits were less than $6,107. 14 Maximum income for optional methods .. 15 Enter the smaller of: two-thirds (2/3) of gross farm income? (not less than zero) or $5,540. Also, include this amount on line 4b above ....... Nonfarm Optional Method. You may use this method only if (a) your net nonfarm profits were less than $6,107 and also less than 72.189% of your gross nonfarm income, and (b) you had net earnings from self-employment of at least $400 in 2 of the prior 3 years. Caution: You may use this method no more than five times 16 Subtract line 15 from line 14 ........ 17 Enter the smaller of: two-thirds (2/3) of gross nonfarm income (not less than zero) or the amount on line 16. Also, include this amount on line 4b above. 14 5,640 15 16 17 1 2 4 From Sch. F, line 9; and Sch. K-1 (Form 1065), box 14 code B. From Sch. C, line 31; and Sch. K-1 (Form 1065), box 14, code A. From Sch. F, line 34; and Sch. K-1 (Form 1065), box 14, code A From Sch. C, line 7; and Sch. K-1 (Form 1065), box 14, code C. -minus the amount you would have entered on line 15 had you not used the optional method. For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 113582 Schedule SE (Form 1040) 2020 Page 2 18 Schedule SE (Form 1040) 2020 Noah Arc 434-11-3311 Attachment Sequence No. 17 Part III Maximum Deferral of Self-Employment Tax Payments If line 4c is zero, skip lines 18 through 20, and enter -- on line 21. 18 Enter the portion of line 3 that can be attributed to March 27, 2020, through December 31, 2020. 19 If line 18 is more than zero, multiply line 18 by 92.35% (0.9235); otherwise, enter the amount from line 18. 20 Enter the portion of lines 15 and 17 that can be attributed to March 27, 2020, through December 31, 2020 .. 21 Combine lines 19 and 20 If line 5b is zero, skip line 22 and enter -o- on line 23. 22 Enter the portion of line 5a that can be attributed to March 27, 2020, through December 31, 2020 ........ 19 20 21 22 A E F G H E No OMS NO. 1545-0074 SCHEDULE C Profit or Loss From Business (Form 1040) (Sole Proprietorship) 2020 Go to www.irs.gov/Schedule for instructions and the latest information. Department of the Treasury Attachment Attach to Form 1040, 1040-SR, 1040-NR, or 1041; partnerships generally Internal Revenue Service (99) must file Form 1065. Sequence No. 09 Name of proprietor Social security number (SSN) Noah Arc 434-11-3311 Principal business or profession, including product or service (see instructions) B Enter code from instructions Pet Store 453910 Business name. If no separate business name, leave blank. D Employer ID number (EIN) (see instr.) The Arc 959-87-6556 Business address (including suite or room no.) 1415 S. Patterson Blvd. City, town or post office, state, and ZIP code Dayton, OH 45409 Accounting method: (1) - Cash (2) - Accrual (3) - Other (specify) Did you "materially participate in the operation of this business during 2020? If "No," see instructions for limit on Yes No losses If you started or acquired this business during 2020, check here 1 Did you make any payments in 2020 that would require you to file Form(s) 1099? See instructions Yes If Yes," did you or will you file required Form(s) 1099?. Yes No Part I Income 1 Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you on Form W-2 and the Statutory employee" box on that form was checked. 143,500. 2 Returns and allowances. 3 Subtract line 2 from line 1 143,500. Cost of goods sold (from line 42).... 62,400.0 Gross profit. Subtract line 4 from line 3 81,100 6 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions). 7 Gross income. Add lines 5 and 6. 7 81,100 Part II Expenses. Enter expenses for business use of your home only on line 30. 8 Advertising 18 Office expense (see instructions). 9 Car and truck expenses (see 19 Pension and profit-sharing plans... instructions).. 20 Rent or lease (see instructions): .... 10 Commissions and fees...... a Vehicles, machinery, and equipment 20a 11 Contract labor (see instructions) b Other business property.... 20b 8,420.00 12 Depletion ......... 21 Repairs and maintenance ..... 13 Depreciation and section 179 22 Supplies (not included in Part III). expense deduction (not included 23 Taxes and licenses............ 23 3,830.00 1 2 3 4 4 5 5 6 8 18 19 9 10 11 12 21 22 24a 14 26 27a 28 29 in Part III) (see instructions) 13 24 Travel and meals: 14 Employee benefit programs a Travel .. 1,230.00 (other than on line 19)..... b Deductible meals (see 15 Insurance (other than health) 15 3,950.00 instructions) 24b 550 16 Interest (see instructions): 25 Utilities 25 1,250.00 a Mortgage (paid to banks, etc.) 1 26 Wages (less employment credits). 25,110.0 b Other.. 16b 27a Other expenses (from line 48) 17 Legal and professional services 17 1,710.00 b Reserved for future use 27b 28 Total expenses before expenses for business use of home. Add lines 8 through 27a. 46,050 29 Tentative profit or loss). Subtract line 28 from line 7.. 35,050 30 Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829 unless using the simplified method. See instructions. Simplified method filers only: Enter the total square footage of (a) your home: _and (b) the part of your home used for business! Use the Simplified Method Worksheet in the instructions to figure the amount to enter on line 30. 30 31 Net profit or loss). Subtract line 30 from line 29. If a profit, enter on both Schedule 1 (Form 1040), line 3, and on Schedule SE, line 2. (If you checked the box on line 1, see instructions). Estates and trusts, enter on Form 1041, line 3. 31 35,050 If a loss, you must go to line 32. 32 If you have a loss, check the box that describes your investment in this activity. See instructions. If you checked 32a, enter the loss on both Schedule 1 (Form 1040), line 3, and on Schedule SE, 32a All investment is at line 2. (If you checked the box on line 1, see the line 31 instructions). Estates and trusts, enter on risk. Form 1041, line 3. 32b - Some investment is If you checked 32b, you must attach Form 6198. Your loss may be limited. not at risk. For Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 11334P Schedule C (Form 1040) 2020 a Cost Schedule C (Form 1040) 2020 Noah Arc 434-11-3311 Page 2 Part III Cost of Goods Sold (see instructions) 33 Method(s) used to value closing inventory: b Lower of cost or market Other (attach explanation) 34 Was there any change in determining quantities, costs, or valuations between opening and closing inventory? If "Yes," attach explanation .. Yes 35 Inventory at beginning of year. If different from last year's closing inventory, attach explanation ... 35 10,250.0 36 Purchases less cost of items withdrawn for personal use 62,150.0 37 Cost of labor. Do not include any amounts paid to yourself. 37 No 36 Part III E No 35 36 37 38 39 40 Cost of Goods Sold (see instructions) 33 Method(s) used to value closing inventory: a Cost b Lower of cost or market Other (attach explanation) 34 Was there any change in determining quantities, costs, or valuations between opening and closing inventory? If "Yes," attach explanation ........ Yes 35 Inventory at beginning of year. If different from last year's closing inventory, attach explanation .... 10,250.0 36 Purchases less cost of items withdrawn for personal use .. 62,150.0 37 Cost of labor. Do not include any amounts paid to yourself. 38 Materials and supplies 39 Other costs.. 40 Add lines 35 through 39 72,400 41 Inventory at end of year 42 Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on line 4 . 62,400 Part IV Information on Your Vehicle. Complete this part only if you are daiming car or truck expenses on line 9 and are not required to file Form 4562 for this business. See the instructions for line 13 to find out if you must file Form 4562. 43 When did you place your vehicle in service for business purposes? (month/day/year) 44 Of the total number of miles you drove your vehicle during 2020, enter the number of miles you used your vehicle for: a Business b Commuting (see instructions) c Other 45 Was your vehicle available for personal use during off-duty hours? 46 Do you (or your spouse) have another vehicle available for personal use? Yes No 47a Do you have evidence to support your deduction?. Yes No b If "Yes," is the evidence written?. Other Expenses. List below business expenses not included on lines 8-26 or line 30. 41 10,000 42 Yes No Yes No Part V 48 Total other expenses. Enter here and on line 27a. 48 NR) SCHEDULE SE OMB No. 1545-0074 Self-Employment Tax (Form 1040) 2020 Department of the Treasury Go to www.irs.gov/ScheduleSE for instructions and the latest information. Attachment Internal Revenue Service (99) Attach to Form 1040, 1040-SR, or 1040-NR. Sequence No. 17 Name of person with self-employment income (as shown on Form 1040, 1040-SR, or 1040- Social security number of person with self-employment income 434-11-3311 Noah Arc Part I Self-Employment Tax Note: If your only income subject to self-employment tax is church employee income, see instructions for how to report your income and the definition of church employee income. A If you are a minister, member of a religious order, or Christian Science practitioner and you filed Form 4361, but you had $400 or more of other net earnings from self-employment, check here and continue with Part I. Skip lines la and 1b if you use the farm optional method in Part II. See instructions. 1a Net farm profit or loss) from Schedule F, line 34, and farm partnerships, Schedule K-1 (Form 1065), box 14, code A... b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve Program payments included on Schedule F, line 4b, or listed on Schedule K-1 (Form 1065), box 20, code AH 1b Skip line 2 if you use the nonfarm optional method in Part II. See instructions. Net profit or loss) from Schedule C, line 31; and Schedule K-1 (Form 1065), box 14, code A (other than farming). See instructions for other income to report or if you are a minister or member of a religious order 3 Combine lines 1a, 1b, and 2. 35,050 4a If line 3 is more than zero, multiply line 3 by 92.35% (0.9235). Otherwise, enter amount from line 3 32,369 Note: If line 4a is less than $400 due to Conservation Reserve Program payments on line 1b, see 1a 2 2 35,050 3 4a instructions. 4b 4c 143,500. Sa 5b 6 b If you elect one or both of the optional methods, enter the total of lines 15 and 17 here ........ c Combine lines 4a and 4b. If less than $400, stop; you don't owe self-employment tax. Exception: If less than $400 and you had church employee income, enter -C- and continue. 5a Enter your church employee income from Form W-2. See instructions for definition of church employee income ......... b Multiply line 5a by 92.35% (0.9235). If less than $100, enter -o- Add lines 4 and 5b Maximum amount of combined wages and self-employment earnings subject to social security tax or the 6.2% portion of the 7.65% railroad retirement (tier 1) tax for 2020 8a Total social security wages and tips (total of boxes 3 and 7 on Form(s) W-2) and railroad retirement (tier 1) compensation. If $137,700 or more, skip lines 8b through 10, and go to line 11..... b Unreported tips subject to social security tax from Form 4137, line 10. c Wages subject to social security tax from Form 8919, line 10....... 6 276,922 7 7 137,700 8a 8b 8c . Add lines and g/ d Add lines 8a, 8b, and 8c. 8d 9 10 11 12 13 Part II 9 Subtract line 8d from line 7. If zero or less, enter-O- here and on line 10 and go to line 11 10 Multiply the smaller of line 5 or line 9 by 12.4% (0.124). 11 Multiply line 6 by 2.9% (0.029).. 12 Self-employment tax. Add lines 10 and 11. Enter here and on Schedule 2 (Form 1040), line 4 13 Deduction for one-half of self-employment tax. Multiply line 12 by 50% (0.50). Enter here and on Schedule 1 (Form 1040), line 14 Optional Methods To Figure Net Earnings (see instructions) Farm Optional Method. You may use this method only if (a) your gross farm income wasn't more than $8,460, or (b) your net farm profits were less than $6,107. 14 Maximum income for optional methods .. 15 Enter the smaller of: two-thirds (2/3) of gross farm income? (not less than zero) or $5,540. Also, include this amount on line 4b above ....... Nonfarm Optional Method. You may use this method only if (a) your net nonfarm profits were less than $6,107 and also less than 72.189% of your gross nonfarm income, and (b) you had net earnings from self-employment of at least $400 in 2 of the prior 3 years. Caution: You may use this method no more than five times 16 Subtract line 15 from line 14 ........ 17 Enter the smaller of: two-thirds (2/3) of gross nonfarm income (not less than zero) or the amount on line 16. Also, include this amount on line 4b above. 14 5,640 15 16 17 1 2 4 From Sch. F, line 9; and Sch. K-1 (Form 1065), box 14 code B. From Sch. C, line 31; and Sch. K-1 (Form 1065), box 14, code A. From Sch. F, line 34; and Sch. K-1 (Form 1065), box 14, code A From Sch. C, line 7; and Sch. K-1 (Form 1065), box 14, code C. -minus the amount you would have entered on line 15 had you not used the optional method. For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 113582 Schedule SE (Form 1040) 2020 Page 2 18 Schedule SE (Form 1040) 2020 Noah Arc 434-11-3311 Attachment Sequence No. 17 Part III Maximum Deferral of Self-Employment Tax Payments If line 4c is zero, skip lines 18 through 20, and enter -- on line 21. 18 Enter the portion of line 3 that can be attributed to March 27, 2020, through December 31, 2020. 19 If line 18 is more than zero, multiply line 18 by 92.35% (0.9235); otherwise, enter the amount from line 18. 20 Enter the portion of lines 15 and 17 that can be attributed to March 27, 2020, through December 31, 2020 .. 21 Combine lines 19 and 20 If line 5b is zero, skip line 22 and enter -o- on line 23. 22 Enter the portion of line 5a that can be attributed to March 27, 2020, through December 31, 2020 ........ 19 20 21 22
