Employer Tax Credit On Certain Tips

[Taxadvisor VA]

Scorp owner runs a restaurant. He made a profit which will finds its way to his K1 and then on to his 1040. If I use the Form 8846 which generates a credit to reduce his soc sec & med employer tax, it will actually increase his taxable income b/c it increases the profit on the K1
My vote is not to use this credit b/c it is a bad tax move for him.

What does anybody think about that?

Thanks,

Taxadvisor VA

[jimenright]

Credit more than the tax on the increased income

The title is my answer