 it's probably only a couple. I'll say total income and then I'll sum that up in the outer column like so. So now I've got this is my data input right here. I'll make that blue and then it'll sum up in the outside and then my expenses will be down here. I just got advertising and then I'll have total expenses total expenses and this will be the sum of this and then I'll say that was 20,000 and we'll get more into this an income statement a schedule see later but just to put something in here so we can pull this in and this will be net income which is the taxable line item which is the 60,000 minus the 20,000 so that 40,000 then is pulling in to the first page in this income line. So now I've got two cells here two sheets that should be pulling into that one income line. So I'm going to double click on this one go to the end of it say plus and then point to this schedule see and the net income and I'm going to pull that in so now I've got 140 in my first line which ties out to this number and now I've got the adjustments to income so let's take a look at some of the other things that are affected by this whole schedule see which will dive into later so I'll just do a quick overview of it because it adds a lot of complexity to things so and I'm not want to dive into it a lot of detail I just kind of want to mirror what the system has put in place right now so the 40,000 is here and that pulled into the income line item it's also pulled into schedule one right there and it sums up on the schedule one here and then it pulls into the first page of the form 1040 as we saw right there which is included in the total income so we also have the self-employment the tax so this is self-employment tax similar to payroll tax but for the business where you have to pay the employee and employee or portion in essence of the self-employment tax so that comes out in essence if we calculate this whole thing out I will get into the calculations more but it comes out to 5652 that goes to the second page of the form 1040 that's kind of where our focus was which is right here right there so that's our added tax so let's first do that and then we'll look at the next consequence so I'm going to go back on over and say okay this other taxes I'm going to make another line for that now again I could make multiple lines I could call it like a schedule se self-employment tax or or I can just call it generically you know other taxes and possibly put other things in there other than just self-employment so I'm going to make a fairly generic one just call it other taxes for now I'm just going to say plus pull this all the way to the right and right there double click on it I'm going to call it other taxes and then I'm going to so I'm going to scroll in and then I'm on a one this time and I'm going to say we have other times the other taxes I'm going to select the whole sheet right click format the cell currency bracketed no dollar sign no decimals okay bolden the the whole thing make this black and white home tab font group black and white and then I'll put the taxes now I could I could pull this calculation in from the schedule see for example and calculate the the taxes I can recalculate basically this whole this whole kind of calculation in excel but I don't want to get too detailed into it right now we might do that later and see the pros and cons of that exercise but right now I just want to recognize that if I have a schedule see what's it going to do this helps me to just see what the software is doing applying the tax code I'm just going to call this self employment employment tax I'll put that in this outer column over here because I'm not going to do any sub calculation to it and it comes out to two it comes out to the to the five six five two that's social securing medicare we'll talk more about it later five six five two and five six five two and so then the total I'm going to say down here the total total other tax I'm going to put in the outer column equals the sum of this and that's the only thing we have in there right now because that's the big one I'll make this I'll make this blue and bordered bordered and blue and so there we have that now this I'm going to pull this into our first page of the 1040 which is going to go right here other taxes so other taxes instead of having zero I'm going to think that pulls in from this other taxes page which only has the self-employment tax I might add to it later so there is that so that pulls in and that should mirror what we have now on page two right there so that makes sense but that 5652 we also get to deduct half of it on page on on page one in essence as part of of an adjustment to income which is right here now why do you get to do that it's kind of complex because it's basically payroll taxes social security and medicare which they're trying to mirror what happens on a sole proprietorship to what happens on like a corporation but they're trying to treat a sole proprietorship on the schedule c as if like you're an employee of your own sole proprietorship in other words they want to take your 40 000 income here and charge you both the employer and employee portion of social security and medicare because on the corporate side if you had an employee so they're treating you like an employee of your own business like so if you were on the corporate side of things then then the the they withhold the employee half of social security and medicare and then they have to pay their half of social security and medicare but they get a deduction for their half of social security and medicare so we should get a deduction if we're self-employed and they're treating us as an employee of ourselves and whatnot but we can't put the deduction on the schedule c because we use the schedule c to calculate the tax and we end up with a circle reference so they have to put it on the schedule one see this is all we'll get more into this later but that's just a quick recap of it so that means that on page two of schedule one there's that two eight uh six two eight six two six two eight two six so that's going to be right here so we talked about it being right uh adjustments adjustments uh two income here and so that pulled in from this tab where we had an IRA now i'm going to say half of self-employment tax when let's get the terminology correct here so they call it they call it uh deductible part of self-employment so let's say part of basically half let's say half half self-employment tax so this one i could say this is going to equal then the full tax which is on other taxes that number self-employment tax divided by two so it should be that two eight two six two eight two six and that number then is i'm going to make this blue and bordered should pull into page one of the 1040 and there we have it okay so let's see what we've got now we've got the 140 000