Self-employment Income
Self-employment Income means:
the income of self-employed persons, which is covered by Social Security if the net profit from the trade or business is at least $400 for the year. The self-employed person pays taxes on earnings in excess of this amount. In some instances, self-employment income may count for Social Security even if actual net earnings are less than $400. Former IRC (check if this IRC provision is current here) §1402.
There is a self-employment loss when: Self-employment income minus self-employment expenses, when self-employment income is less than self-employment expenses.
There is a self-employment profit when: Self-employment income minus self-employment expenses, when self-employment income is greater than self-employment expenses.
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