LenaH
Employee Tax Expert

Self employed

Yes, you must still report the $16,070 on Schedule SE and pay the self-employment tax, even though your partnership income is being offset by your accumulated losses on Form 6198. Your losses can only affect your federal income tax liability, not your self-employment tax. 

 

Per the Schedule SE instructions, self-employment tax is determined by net earnings from self-employment shown in Box 14 (code A). There is no reduction allowed for losses on Form 6198. For the list of income and losses not included in the net earnings amount, click here

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"