TaxGuyBill
Level 15

@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.

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