Question

Since Traders (as Sole Proprietors) don't incur Self-Employment tax on gains/losses, how do we remove the Self-Employment tax in Schedule C?

Forum|Forum|4 years ago
April 3, 2022
1 reply
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Per the article below, Traders (as Sole Proprietors) don't incur Self-Employment tax on gains/losses.
How do I remove the Self-Employment tax in Schedule C? Turbotax adds this automatically.

https://ttlc.intuit.com/community/business-accounts/help/what-is-a-trader-of-securities-and-how-do-you-qualify-for-it/00/2163663

TurboTax Self Employed Online

A

AnnetteB6

There should not be any income reported on your Schedule C for self-employment tax to be calculated. The Schedule C should only be used to report your business expenses, not your income.

Your gains/losses should either be reported on Schedule D and Form 8949 or Form 4797 if you are covered under a Mark-to-Market election.

Take a look at the following TurboTax help article for more information: