Re: How to report royalty income on Form 1040?

Arthur Kamlet wrote:
Phil Marti <prm20871@xxxxxxxxxxx> wrote:
The combination
of line 21 and Schedule SE is an error that the CPA should have caught.

Well, Phil, I sometimes do exactly that, when TP insists there are
no expenses at all for SE income.

In fact, I use Ultra Tax which has a built-in option for line 21
that allows you to declare this SE income, and then generates Sch
SE.

That seems bizarre to me because then you will pay self-employment tax
on the amount reported on Sch SE, and you will pay personal income tax
on the amount reported on line 21 of Form 1040. How do you reconcile
that in your mind, Art?

(Note: That is not intended to be a provocative attack.)

I wonder if the Sch SE auto-generated by UltraTax somehow winds up with
zero self-employment tax. But in my case, there was indeed
self-employment tax in addition to the personal income tax.

.