RJK0308
Level 2
02-17-2024
01:50 PM
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Hello everyone.
I am working on a return where the client has W2 income and also has their own business for several years. This year their business (schedule C) recorded a loss. In the Pro Connect suggestions, I'm receiving the message, "The taxpayer may benefit by electing the Optional Self-Employment Tax method. Refer to IRS Schedule SE instructions for information regarding benefits that can be derived."
Is anyone familiar with this? If so, are there any benefits and/or consequences of using this method? Are there any other issues to consider?