I have one LLC with a profit and another with a net operating loss. Is there a way to offset the self employment tax for the profitable business by the loss of the business with the loss?
Thank you
You'll need to sign in or create an account to connect with an expert.
No, Self-Employment tax is your FICA tax. Since you did have a profit on one of your businesses, your Social Security Statement will show income for that profit and your self-employment tax will fund your social security account.
Thank you for your reply.
Seems like the two amounts one negative, one positive, both representing work I did for the year, would combine to create the actual income that I made. I'd rather not fun my Social security account.
I think they will be combined on a single Schedule SE. Make sure each Schedule C is assigned to the right spouse if married. Like both to you.
Yes they are combined. See Schedule SE instructions top of page SE-3. If you have a loss in one business it reduces the income from another. Figure the combined SE tax on one Schedule SE.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
AlisonHOA
New Member
TaxDonor1
Level 1
DoDesign
Level 1
DoDesign
Level 1
cmallow17
Level 3
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.