Question

Self employment tax for two business, one business has a loss

Forum|Forum|2 years ago
April 14, 2024
3 replies
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I have one LLC with a profit and another with a net operating loss. Is there a way to offset the self employment tax for the profitable business by the loss of the business with the loss?

Thank you

KrisD15

No, Self-Employment tax is your FICA tax. Since you did have a profit on one of your businesses, your Social Security Statement will show income for that profit and your self-employment tax will fund your social security account.

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S

SunnysideUpAuthor

Thank you for your reply.

Seems like the two amounts one negative, one positive, both representing work I did for the year, would combine to create the actual income that I made. I'd rather not fun my Social security account.

VolvoGirl

I think they will be combined on a single Schedule SE. Make sure each Schedule C is assigned to the right spouse if married. Like both to you.

VolvoGirl

Yes they are combined. See Schedule SE instructions top of page SE-3. If you have a loss in one business it reduces the income from another. Figure the combined SE tax on one Schedule SE.

https://www.irs.gov/pub/irs-pdf/i1040sse.pdf