Publication 560: Retirement Plans for Small Business;

This is archived information that pertains only to the 2004 Tax Year. If you
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Portion of Schedule S.E. (Form 1040) and Portion of Form 1040. Summary: These are portions of Schedule S.E. (Form 1040) and Form 1040 (2004) as pertains to the description in the text. The completed line items are:

Under Portion of Schedule S.E. (Form 1040) “Section A--Short Schedule S.E.”:

“2. Net profit or (loss) from Schedule C, line 31; Schedule C-E.Z., line 3; Schedule K-1 (Form 1065), box 14, Code A (other than farming); and Schedule K-1, (Form 1065-B), box 9. Ministers and members of religious orders, see page S.E.-1 for amounts to report on this line. See page S.E.-2 for other income to report” field contains 200,000

“3. Combine lines 1 and 2” field contains 200,000

“4. Net earnings from self-employment. Multiply line 3 by 92.35% (.9235). If less than $400, do not file this schedule; you do not owe self-employment tax” field contains 184,700

“5. Self-employment tax. If the amount on line 4 is: $87,900 or less, multiply line 4 by 15.3% (.153). Enter the result here and on Form 1040, line 57; More than $87,900, multiply line 4 by 2.9% (.029). Then, add $10,899.60 to the result. Enter the total here and on Form 1040, line 57” field contains 16,256

“6. Deduction for one-half of self-employment tax. Multiply line 5 by 50% (.5). Enter the result here and on Form 1040, line 30” field contains 8,128

Under Portion of Form 1040 “Adjusted Gross Income”:

“28. One-half of self-employment tax. Attach Schedule S.E.” field contains 8,128

“30. Self-employed, S.E.P., S.I.M.P.L.E., and qualified plans” field contains 14,966

“33. Add lines 23 through 32a” field contains 23,094