TaxGuyBill
Level 15
02-25-2024
01:23 PM
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@eliteincometax wrote:
Escenario:
line 8 433 (self-employed) (IT IS MORE THAN 400)
The threshold for SE tax is not $400 of self employed profit. The threshold is $400 of "net earnings from self-employment". That is 92.35% of the profit.
Interestingly, it seems that ProSeries round the numbers but the IRS does not.
The "net earnings" on $433 of profit is $399.88. ProSeries rounds it to $400, which triggers SE tax. But based on what you are saying, it seems like the IRS is not rounding it, so $399.88 is less than the SE tax threshold.