I started a small business last year as a sole prop and had income of 8K and twice that in expenses. The Turbo tax software is saying I don't need to pay SE taxes. Why?

zc5ccc3 · ‎June 6, 2019

MinhT · ‎June 6, 2019

TurboTax is correct. As your expenses are higher than your self-employment income, you have a self-employment loss and do not owe self-employment taxes.

Self-employment is only calculated on your self-employment net earnings.

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View solution in original post

MinhT · ‎June 6, 2019

TurboTax is correct. As your expenses are higher than your self-employment income, you have a self-employment loss and do not owe self-employment taxes.

Self-employment is only calculated on your self-employment net earnings.

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**Mark the post that answers your question by clicking on "Mark as Best Answer"

zc5ccc3 · ‎June 6, 2019

Thank you! Will the software still generate an SE schedule to go with my 1040?

MinhT · ‎June 6, 2019

No, as there is no self-employment tax due.

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I started a small business last year as a sole prop and had income of 8K and twice that in expenses. The Turbo tax software is saying I don't need to pay SE taxes. Why?