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Should I do the non farm optional method?

I can't find anyone who knows what this is.  I had < $7493 S E income last year & TT asked if I want to use the non farm optional method to adjust  S E tax.  There is no farm income.  Is this a good idea both for now and in the future?  

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1 Reply
RobertB4444
Employee Tax Expert

Should I do the non farm optional method?

The non-farm optional method is a lower tax on self-employed earnings as long as they are below $7,493 and less than 72.189% of your gross (non-farm) income.  

 

So if you can take advantage of it you should.  However, you can only do it for five years (the years don't have to be consecutive).

 

@annh89 

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