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Department of the Treasury
Internal Revenue Service

2023 Instructions for Schedule SE
Use Schedule SE (Form 1040) to figure the tax due on net earnings from self-employ-
Self-Employment ment. The Social Security Administration (SSA) uses the information from Sched-
ule SE to figure your benefits under the social security program. This tax applies no
Tax matter how old you are and even if you are already getting social security or Medicare
benefits.
Additional information. See Pub. 225 or Pub. 334.

Section references are to the Internal Revenue Code unless Who Must Pay Self-Employment (SE) Tax
otherwise noted.
Self-Employed Persons
Future Developments You must pay SE tax if you had net earnings of $400 or more
For the latest information about developments related to Sched- as a self-employed person. If you are in business (farm or non-
ule SE (Form 1040) and its instructions, such as legislation farm) for yourself, you are self-employed.
enacted after they were published, go to IRS.gov/ScheduleSE. You must also pay SE tax on your share of certain partner-
ship income and your guaranteed payments. See Partnership
Income or Loss, later.
What's New
Maximum income subject to social security tax. For 2023, Employees of Churches and Church Organizations
the maximum amount of self-employment income subject to
social security tax is $160,200. If you had church employee income of $108.28 or more, you
must pay SE tax. Church employee income is wages you re-
Form 1040-SS, Part V and Part VI, have been replaced. ceived as an employee (other than as a minister, member of a
For 2023, Schedule SE (Form 1040) is available to be filed religious order, or Christian Science practitioner) of a church or
with Form 1040-SS, if applicable. For additional information, qualified church-controlled organization that has a certificate in
see the Instructions for Form 1040-SS. effect electing an exemption from employer social security and
Medicare taxes.
General Instructions
Ministers, Members of Religious Orders, and
Who Must File Schedule SE Christian Science Practitioners
You must file Schedule SE if: In most cases, you must pay SE tax on salaries and other in-
• The amount on line 4c of Schedule SE is $400 or more, come for services you performed as a minister, member of a re-
or ligious order who hasn’t taken a vow of poverty, or Christian
• You had church employee income of $108.28 or more. Science practitioner. But if you filed Form 4361 and received
(Income from services you performed as a minister, member of IRS approval, you will be exempt from paying SE tax on those
a religious order, or Christian Science practitioner isn't church net earnings. If you had no other income subject to SE tax, en-
employee income.) See Employees of Churches and Church ter “Exempt—Form 4361” on Schedule 2 (Form 1040), line 4.
Organizations, later. However, if you had other earnings of $400 or more subject to
Exception to filing Schedule SE. If you filed Form 4029 or SE tax, see line A at the top of Schedule SE.
Form 4361 and received IRS approval, you may not need to
file Schedule SE. See Ministers, Members of Religious Orders, If you have ever filed Form 2031 to elect social secur-
and Christian Science Practitioners and Members of Certain ! ity coverage on your earnings as a minister, you can’t
Religious Sects, later, for information on how to report your CAUTION revoke that election.

self-employment earnings. If you must pay SE tax, include this income on Sched-
Even if you had a loss or a small amount of income ule SE, line 2. But don’t report it on Schedule SE, line 5a; it
TIP from self-employment, it may be to your benefit to file isn’t considered church employee income. Also, include on
Schedule SE and use either "optional method" in the line 2:
instructions for Part II of Schedule SE (discussed later). • The rental value of a home or an allowance for a home
furnished to you (including payments for utilities); and
• The value of meals and lodging provided to you, your
spouse, and your dependents for your employer's convenience.
However, don’t include on line 2:

Dec 22, 2023 Cat. No. 24334P SE-1

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• Retirement benefits you received from a church plan after U.S. Citizens or Resident Aliens Living Outside the
retirement, or United States
• The rental value of a home or an allowance for a home
If you are a self-employed U.S. citizen or resident alien living
furnished to you (including payments for utilities) after retire-
outside the United States, in most cases you must pay SE tax.
ment.
Foreign earnings from self-employment can’t be reduced by
If you were a duly ordained minister who was an employee your foreign earned income exclusion when computing SE tax.
of a church and you must pay SE tax, the unreimbursed busi-
Exception. The United States has social security agreements
ness expenses that you incurred as a church employee are not
with many countries to eliminate dual taxes under two social
deductible as an itemized deduction for income tax purposes.
security systems. Under these agreements, you must generally
However, when figuring SE tax, subtract on line 2 the allowa-
pay social security and Medicare taxes to only the country in
ble expenses from your self-employment earnings and attach
which you live.
an explanation.
The United States now has social security agreements with
If you were a U.S. citizen or resident alien serving outside
the following countries: Australia, Austria, Belgium, Brazil,
the United States as a minister or member of a religious order
Canada, Chile, the Czech Republic, Denmark, Finland, France,
and you must pay SE tax, you can’t reduce your net earnings
Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Lux-
by the foreign earned income exclusion or the foreign housing
embourg, the Netherlands, Norway, Poland, Portugal, the Slo-
exclusion or deduction.
vak Republic, Slovenia, South Korea, Spain, Sweden, Switzer-
See Pub. 517 for additional details regarding social security land, the United Kingdom, and Uruguay.
for members of the clergy and religious workers.
If you have questions about international social security
agreements, or to see if any additional agreements have been
Members of Certain Religious Sects
entered into, you can go to the SSA's International Programs
If you have conscientious objections to social security insur- website at SSA.gov/international. The website also provides
ance because of your membership in and belief in the teachings contact information for questions about benefits and the agree-
of a religious sect recognized as being in existence at all times ments.
since December 31, 1950, and which has provided a reasonable If your self-employment income is exempt from SE tax, you
level of living for its dependent members, you are exempt from should get a statement from the appropriate agency of the for-
SE tax if you received IRS approval by filing Form 4029. In eign country verifying that your self-employment income is
this case, don’t file Schedule SE. Instead, enter “Ex- subject to social security coverage in that country. If the for-
empt—Form 4029” on Schedule 2 (Form 1040), line 4. See eign country won’t issue the statement, go to the SSA Office of
Pub. 517 for details. Earnings and International Operations at SSA International
Programs Online Certificate of Coverage Service. Don’t com-
U.S. Citizens Employed by Foreign Governments or plete Schedule SE. Instead, attach a copy of the statement to
International Organizations Form 1040, 1040-SR, or 1040-NR, and enter “Exempt, see at-
You must pay SE tax on income you earned as a U.S. citizen tached statement” on Schedule 2 (Form 1040), line 4.
employed by a foreign government (or, in certain cases, by a
wholly owned instrumentality of a foreign government or an Nonresident Alien
international organization under the International Organizations If you are a self-employed nonresident alien living in the Uni-
Immunities Act) for services performed in the United States, ted States, you must pay SE tax if an international social secur-
Puerto Rico, Guam, American Samoa, the Commonwealth of ity agreement in effect determines that you are covered under
the Northern Mariana Islands, or the U.S. Virgin Islands. Re- the U.S. social security system. See Exception under U.S. Citi-
port income from this employment on Schedule SE, line 2. If zens or Resident Aliens Living Outside the United States, earli-
you performed services elsewhere as an employee of a foreign er, for information about international social security agree-
government or an international organization, those earnings are ments. If your self-employment income is subject to SE tax,
exempt from SE tax. complete Schedule SE and file it with your Form 1040-NR.
Exception—Dual citizens. A person with dual U.S.-foreign
citizenship is generally considered to be a U.S. citizen for so- Chapter 11 Bankruptcy Cases
cial security purposes. However, if you are a U.S. citizen and While you are a debtor in a chapter 11 bankruptcy case, your
also a citizen of a country with which the United States has a net profit or loss from self-employment (for example, from
bilateral social security agreement, other than Canada or Italy, Schedule C or Schedule F) won't be included in your Form
your work for the government of that foreign country is always 1040 or 1040-SR income. Instead, it will be included on the in-
exempt from U.S. social security taxes. For further information come tax return (Form 1041) of the bankruptcy estate. Howev-
about these agreements, see the exception shown in the next er, you (not the bankruptcy estate) are responsible for paying
section. SE tax on your net earnings from self-employment.
Enter on the dotted line to the left of Schedule SE, line 3,
“Chap. 11 bankruptcy income” and the amount of your net
profit or (loss). Combine that amount with the total of lines 1a,
1b, and 2 (if any) and enter the result on line 3.

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For other reporting requirements, see Chapter 11 Bankrupt- • If the allocated amount is a net profit, subtract it from the
cy Cases in the Instructions for Form 1040. total of lines 1a, 1b, and 2.
• If the allocated amount is a loss, treat it as a positive
More Than One Business amount and add it to the total of lines 1a, 1b, and 2.
If you had two or more businesses subject to SE tax, your net
Community income included on Schedule(s) C or F
earnings from self-employment are the combined net earnings
must be divided for income tax purposes based on the
from all of your businesses. If you had a loss in one business, it CAUTION!
community property laws of your state. See Pub. 555
reduces the income from another. Figure the combined SE tax
for more information.
on one Schedule SE.
Joint Returns Qualified Joint Ventures (QJV)
Show the name of the spouse with self-employment income on If you and your spouse materially participate as the only mem-
Schedule SE. If both spouses have self-employment income, bers of a jointly owned and operated business, and you file a
each must file a separate Schedule SE. joint return for the tax year, you can make a joint election to be
taxed as a QJV instead of a partnership. For information on
Include the total profits or losses from all businesses on what it means to materially participate, see Material participa-
Form 1040 or 1040-SR. Enter the combined SE tax on Sched- tion in the Instructions for Schedule C.
ule 2 (Form 1040), line 4.
To make this election, you must divide all items of income,
Community Income gain, loss, deduction, and credit attributable to the business be-
If any of the income from a business (including farming) is tween you and your spouse in accordance with your respective
community income, then the income and deductions are repor- interests in the venture. Each of you must file a separate Sched-
ted as follows. ule C or F. On each line of your separate Schedule C or F, you
• If only one spouse participates in the business, all of the must enter your share of the applicable income, deduction, or
income from that business is the self-employment earnings of loss. Each of you must also file a separate Schedule SE to pay
the spouse who carried on the business. SE tax, as applicable.
• If both spouses participate, the income and deductions are
allocated to the spouses based on their distributive shares. For more information on qualified joint ventures, go to
• If either or both spouses are partners in a partnership, see IRS.gov/QJV.
Partnership Income or Loss, later. Rental real estate business. If you and your spouse make the
• If both spouses elected to treat the business as a qualify- election to be taxed as a QJV for your rental real estate busi-
ing joint venture, see Qualified Joint Ventures, later. ness, the income generally isn’t subject to SE tax. To indicate
Married filing separately. If you and your spouse had com- that election, be sure to check the “QJV” box in Part I, line 2,
munity income and file separate returns, attach Schedule SE to of each Schedule E that the rental property is listed on. Don’t
the return of each spouse with self-employment earnings under file Schedule SE unless you have other income subject to SE
the rules described earlier. Also, attach Schedule(s) C or F tax. For an exception to this income not being subject to SE
(showing the spouse's share of community income and expen- tax, see item 3 under Other Income and Losses Included in Net
ses) to the return of each spouse. Earnings From Self-Employment, later.
If you and your spouse make the election for a farm rental
Spouse who carried on the business. If you are the only
business that you report on Form 4835, Farm Rental Income
spouse who carried on the business, you must include on
and Expenses, each of you must file a separate Form 4835 to
Schedule SE, line 3, the net profit or (loss) reported on the oth-
report your share of farm rental income based on crops or live-
er spouse's Schedule C or F (except in those cases described
stock produced by the tenant. Don’t file Schedule SE unless
later under Income and Losses Not Included in Net Earnings
you have other income subject to the SE tax.
From Self-Employment). Enter on the dotted line to the left of
Schedule SE, line 3, “Community income taxed to spouse” and Fiscal Year Filers
the amount of any net profit or (loss) allocated to your spouse
If your tax year is a fiscal year, use the tax rate and annual
as community income. Combine that amount with the total of
earnings limit that apply at the time the fiscal year begins.
lines 1a, 1b, and 2. Enter the result on line 3.
Don’t prorate the tax or annual earnings limit for a fiscal year
Spouse who didn’t carry on the business. If you aren’t the that overlaps the date of a change in the tax or annual earnings
spouse who carried on the business and you had no other in- limit.
come subject to SE tax, enter “Exempt community income” on
Schedule 2 (Form 1040), line 4. Don’t file Schedule SE.
But if you have $400 or more of other earnings subject to
Line Instructions
SE tax, you must file Schedule SE. Include on Schedule SE,
line 1a or 2, the net profit or (loss) from Schedule(s) C or F al- You will need to figure your net earnings from self-employ-
located to you as community income. On the dotted line to the ment. To find out what is included as net earnings from
left of Schedule SE, line 3, enter “Exempt community income” self-employment, see Net Earnings From Self-Employment, lat-
and the allocated amount. Figure the amount to enter on line 3 er.
as follows.

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Enter all negative amounts in (parentheses).
TIP Net Earnings From Self-Employment
In most cases, net earnings include your net profit from a farm
or nonfarm business.
Instructions for Part I Partnership Income or Loss
You Have Only Church Employee Income If you were a general or limited partner in a partnership, in-
clude on line 1a or line 2, whichever applies, the amount of net
Subject to SE Tax
earnings from self-employment from box 14, code A, of
If your only income subject to SE tax is church employee in- Schedule K-1 (Form 1065). General partners should reduce this
come (described earlier under Employees of Churches and amount by certain expenses before entering it on Schedule SE.
Church Organizations), skip lines 1 through 4b. Enter -0- on See your Schedule K-1 instructions. If you reduce the amount
line 4c and go to line 5a. you enter on Schedule SE, you must attach an explanation.
Note. Income from services you perform as a minister, mem- Limited partners should include only guaranteed payments for
ber of a religious order, or Christian Science practitioner isn’t services actually rendered to or on behalf of the partnership.
church employee income.
If a partner died and the partnership continued, include in
Line 1b self-employment income the deceased's distributive share of
If you were receiving social security retirement or social secur- the partnership's ordinary income or loss through the end of the
ity disability benefits at the time you received your Conserva- month in which the partner died. See section 1402(f).
tion Reserve Program (CRP) payment(s), enter the amount of If you were married and both you and your spouse were
your taxable CRP payment(s) on line 1b. These payments are partners in a partnership, each of you must report your net
included on Schedule F, line 4b, or listed in box 20, code AQ, earnings from self-employment from the partnership. Each of
of Schedule K-1 (Form 1065). you must file a separate Schedule SE and report the partnership
Lines 4a Through 4c income or loss on Schedule E (Form 1040), Part II, for income
tax purposes. If only one of you was a partner in a partnership,
If both lines 4a and 4c are less than $400 and you have an the spouse who was the partner must report their net earnings
amount on line 1b, combine lines 1a and 2. from self-employment from the partnership.
• If the total of lines 1a and 2 is $434 or more, file Sched-
ule SE (completed through line 4c) with your tax return. En- Community income. Your own distributive share of partner-
ter -0- on Schedule 2 (Form 1040), line 4.* ship income is included in figuring your net earnings from
• If the total of lines 1a and 2 is less than $434, don’t file self-employment. Unlike the division of that income between
Schedule SE unless you choose to use an optional method to spouses for figuring income tax, no part of your share can be
figure your SE tax. included in figuring your spouse's net earnings from self-em-
* If you also have church employee income (described earlier ployment.
under Employees of Churches and Church Organizations), also Share Farming
complete lines 5a and 5b. Complete the rest of Schedule SE, as
You are considered self-employed if you produce crops or live-
appropriate.
stock on someone else's land for a share of the crops or live-
Line 13 stock produced (or a share of the proceeds from the sale of
If you are filing Form 1040-SS, skip this line. them). This applies even if you paid another person (an agent)
to do the actual work or management for you. Report your net
earnings for income tax purposes on Schedule F (Form 1040)
Additional Medicare Tax and for SE tax purposes on Schedule SE. See Pub. 225 for de-
A 0.9% Additional Medicare Tax may apply to you if the total tails.
amount on line 6 of all your Schedules SE exceeds one of the
following threshold amounts (based on your filing status). Other Income and Losses Included in Net
• Married filing jointly—$250,000 Earnings From Self-Employment
• Married filing separately—$125,000 1. Rental income from a farm if, as landlord, you material-
• Single, Head of household, or Qualifying surviving ly participated in the production or management of the produc-
spouse—$200,000 tion of farm products on this land. This income is farm earn-
If you have both wages and self-employment income, the ings. To determine whether you materially participated in farm
threshold amount for applying the Additional Medicare Tax on management or production, don’t consider the activities of any
the self-employment income is reduced (but not below zero) by agent who acted for you. The material participation tests for
the amount of wages subject to Additional Medicare Tax. landlords are explained in Pub. 225.
2. Cash or a payment-in-kind from the Department of Ag-
Use Form 8959, Additional Medicare Tax, to figure this tax.
riculture for participating in a land diversion program.
For more information, see the Instructions for Form 8959, or
go to IRS.gov/ADMTfaqs. 3. Payments for the use of rooms or other space when you
also provided substantial services for the convenience of your
tenants. Examples are hotel rooms, boarding houses, tourist

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camps or homes, trailer parks, parking lots, warehouses, and Schedule SE. However, if you had other earnings of $400 or
storage garages. See Pub. 334 for more information. more subject to SE tax, enter “Exempt—Notary” and the
4. Income from the retail sale of newspapers and maga- amount of your net profit as a notary public from Schedule C
zines if you were age 18 or older and kept the profits. on the dotted line to the left of Schedule SE, line 3. Subtract
that amount from the total of lines 1a, 1b, and 2, and enter the
5. Income you receive as a direct seller. Newspaper carriers
result on line 3.
or distributors of any age are direct sellers if certain conditions
apply. See Pub. 334 for details. 3. Income you received as a retired partner under a written
partnership plan that provides for lifelong periodic retirement
6. Amounts received by current or former self-employed
payments if you had no other interest in the partnership and
insurance agents and salespersons that are:
didn’t perform services for it during the year.
a. Paid after retirement but figured as a percentage of com-
4. Income from real estate rentals if you didn’t receive the
missions received from the paying company before retirement,
income in the course of a trade or business as a real estate deal-
b. Renewal commissions, or er. Report this income on Schedule E.
c. Deferred commissions paid after retirement for sales 5. Income from farm rentals (including rentals paid in crop
made before retirement. shares) if, as landlord, you didn’t materially participate in the
However, certain termination payments received by former production or management of the production of farm products
insurance salespersons aren’t included in net earnings from on the land. See Pub. 225 for details. Report this income on
self-employment (as explained in item 10 under Income and Form 4835. Use two Forms 4835 if you and your spouse made
Losses Not Included in Net Earnings From Self-Employment, an election to be taxed as a QJV.
later). 6. Payments you receive from the CRP if you are receiving
7. Income of certain crew members of fishing vessels with social security benefits for retirement or disability. Deduct
crews of normally fewer than 10 people. See Pub. 334 for de- these payments on line 1b of Schedule SE.
tails. 7. Dividends on shares of stock and interest on bonds,
8. Fees as a state or local government employee if you notes, or other evidence of indebtedness issued with interest
were paid only on a fee basis and the job wasn’t covered under coupons or in registered form by any corporation (including
a federal-state social security coverage agreement. those issued by a government or its political subdivision), if
9. Interest received in the course of any trade or business, you didn’t receive the income in the course of your trade or
such as interest on notes or accounts receivable. business as a dealer in stocks or securities.
10. Fees and other payments received by you for services as 8. Gain or loss from:
a director of a corporation. a. The sale or exchange of a capital asset;
11. Recapture amounts under sections 179 and 280F that b. The sale, exchange, involuntary conversion, or other dis-
you included in gross income because the business use of the position of property unless the property is stock in trade or oth-
property dropped to 50% or less. Don’t include amounts you er property that would be includible in inventory, or held pri-
recaptured on the disposition of property. See Form 4797. marily for sale to customers in the ordinary course of the busi-
12. Generally, fees you received as a professional fiduciary. ness; or
This may also apply to fees paid to you as a nonprofessional c. Certain transactions in timber, coal, or domestic iron
fiduciary if the fees relate to active participation in the opera- ore.
tion of the estate's business, or the management of an estate 9. Net operating losses from other years.
that required extensive management activities over a long peri-
10. Termination payments you received as a former insur-
od of time.
ance salesperson if all of the following conditions are met.
13. Gain or loss from section 1256 contracts or related prop-
a. The payment was received from an insurance company
erty by an options or commodities dealer in the normal course
because of services you performed as an insurance salesperson
of dealing in or trading section 1256 contracts.
for the company.
Income and Losses Not Included in Net b. The payment was received after termination of your
Earnings From Self-Employment agreement to perform services for the company.
1. Salaries, fees, and other income subject to social securi- c. You didn’t perform any services for the company after
ty or Medicare tax that you received for performing services as termination and before the end of the year in which you re-
an employee, including services performed as an employee un- ceived the payment.
der the railroad retirement system. This includes services per- d. You entered into a covenant not to compete against the
formed as a public official (except as a fee-basis government company for at least a 1-year period beginning on the date of
employee as explained in item 8 under Other Income and Los- termination.
ses Included in Net Earnings From Self-Employment, earlier). e. The amount of the payment depended primarily on poli-
2. Fees received for services performed as a notary public. cies sold by or credited to your account during the last year of
If you had no other income subject to SE tax, enter “Ex- the agreement, or the extent to which those policies remain in
empt—Notary” on Schedule 2 (Form 1040), line 4. Don’t file force for some period after termination, or both.

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f. The amount of the payment didn’t depend to any extent • The amount you would have entered on Schedule SE,
on length of service or overall earnings from services per- line 1b, had you not used the optional method.
formed for the company (regardless of whether eligibility for There is no limit on how many years you can use this meth-
the payment depended on length of service). od.
Statutory Employee Income Under this method, report in Part II, line 15, two-thirds of
your gross farm income, up to $6,560, as your net earnings.
If you were a statutory employee, don’t include the net profit or
This method can increase or decrease your net earnings from
(loss) from Schedule C, line 31, on Schedule SE, line 2. But be
farm self-employment even if the farming business had a loss.
sure to include on line 8a statutory employee social security
wages and tips from Form W-2. For a farm partnership, figure your share of gross income
based on the partnership agreement. With guaranteed pay-
ments, your share of the partnership's gross income is your
Instructions for Part II guaranteed payments plus your share of the gross income after
Optional Methods it is reduced by all guaranteed payments made by the partner-
ship. If you were a limited partner, include only guaranteed
payments for services you actually rendered to or on behalf of
How the Optional Methods Can Help You
the partnership.
Social security coverage. The optional methods may give you
credit toward your social security coverage even though you Nonfarm Optional Method
have a loss or a small amount of income from self-employ- You may be able to use this method to figure your net earnings
ment. from nonfarm self-employment if your net nonfarm profits
Credits affected by earned income. Using the optional meth- were less than $7,103 and also less than 72.189% of your gross
ods may qualify you to claim the earned income credit (EIC), nonfarm income. Net nonfarm profits are the total of the
additional child tax credit (ACTC), or child and dependent care amounts from:
credit or give you a larger credit if your net earnings from • Schedule C (Form 1040), line 31; and
self-employment (determined without using the optional meth- • Box 14, code A, of Schedule K-1 (Form 1065) (from oth-
ods) are less than $6,560. Figure the EIC, ACTC, and child and er than farm partnerships).
dependent care credit with and without using the optional To use this method, you must also be regularly self-em-
methods to see if the optional methods will benefit you. ployed. You meet this requirement if your actual net earnings
Self-employed health insurance deduction. The optional from self-employment were $400 or more in 2 of the 3 years
methods of computing net earnings from self-employment may before the year you use the nonfarm optional method. The net
be used to figure your self-employed health insurance deduc- earnings of $400 or more could be from either farm or nonfarm
tion. earnings, or both. The net earnings include your distributive
Other items affected by adjusted gross income (AGI). Us- share of partnership income or loss subject to SE tax.
ing the optional methods may decrease your AGI, which may You can use the nonfarm optional method to figure your
affect your eligibility for credits, deductions, or other items that earnings from self-employment for only 5 years. The 5 years
are subject to an AGI limit. Figure your AGI with and without don’t have to be consecutive.
using the optional methods to see if the optional methods will Under this method, report in Part II, line 17, two-thirds of
benefit you. your gross nonfarm income, up to the amount on line 16, as
Using the optional methods as described above may your net earnings. But you can’t report less than your actual net
earnings from nonfarm self-employment.
! be beneficial, but they may also increase your SE tax.
CAUTION Figure your share of gross income from a nonfarm partner-
ship in the same manner as a farm partnership. See Farm Op-
Changing Your Method tional Method, earlier, for details.
You can change the method used to figure your net earnings
from self-employment after you file your return. That is, you Using Both Optional Methods
can change from the regular to the optional method or from the If you can use both methods, you can report less than your total
optional to the regular method. To do this, file Form 1040-X. actual net earnings from farm and nonfarm self-employment,
but you can’t report less than your actual net earnings from
Farm Optional Method nonfarm self-employment alone.
You may use this method to figure your net earnings from farm If you use both methods to figure net earnings, you can’t re-
self-employment if your gross farm income was $9,840 or less port more than $6,560 of net earnings from self-employment.
or your net farm profits were less than $7,103. Net farm profits
are:
• The total of the amounts from Schedule F (Form 1040),
line 34, and box 14, code A, of Schedule K-1 (Form 1065), mi-
nus

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