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Business & farm
The optional methods are to intentionally INCREASE the amount of Self Employment tax that you pay. The purpose of that is because SOME people are trying to get their 40 quarters (10 years) of profit/earned income to qualify for Social Security. In some cases, intentionally paying more MIGHT slightly increase your Social Security Benefits.
So if you have already had (or will expect to have) at least 10 years of business profit or other earned income (such as a W-2) of $6000 or more, most people would NOT want to do an optional method to pay more tax.
So if you have already had (or will expect to have) at least 35 years of business profit or other earned income (such as a W-2) of $6000 or more, definitely DON'T use the optional method.
March 29, 2020
4:21 PM