I started a new contractor job this year but the costs were greater than the income leading to net negative self-employment income. Does this get counted vs other income?

[saudahmirza]

Can this be carried over to future year to counteract any future positive self-employment income?

[CarolynM]

The negative result from your self employment this year is deducted against your current year income.

It does not carry forward to future year self-employment, but rather reduces your current Adjusted Gross Income. 

It is possible to have negative income, but it does not carry forward to future years. 

[saudahmirza]

Thank you so much! That is really helpful. In general, negative self-employment income can not be carried over? I am just trying to make sure it is best to have it deduct against my current AGI as opposed to self-employment income for the coming year.

Thanks!

[CarolynM]

Correct, negative self employment does not carry over

[saudahmirza]

Thank you so much for your help!