Thank you for your response. So then I guess anyone who has one spouse electing to use a dependent FSA through their work where the other is running any business that happens to have an operating loss (not the case here, but given that the revenue is showing up as investment income), is just out of luck? Even though they worked?
In this case, my earnings exceeded the minimum monthly threshold, but there is no way to modify the earned income sheet. Sounds like the IRS doesn't fully recognize day trading as real "work".
I do realize there is a benefit to not paying the SE tax here, but for anyone running a legitimate business (even non-trading) and just had a bad year or is starting out and has expenses exceeding revenues, they are getting penalized. Not your fault, but it would be nice to see the IRS address this one.
