I have a tax loss carry forward from 1990 for tax year 2010
of $120,000 My tax loss covered any income I earned in 2010 but I did earn some
gross S/E income.Does my tax loss wipe out my S/E tax?
Answer :
Self-employment income couldn't be offset with an NOL
carryforward The Tax Court has concluded that an accountant was prohibited from
offsetting his net earnings from self-employment with an NOL carryforward.As
you know, as long as the amount on SchC line 29/31 is $400 or exceeds $400 then
you need to file Sch SE and also as long as the amount on Sch SE linne 3/ 4
exceeds $400 or $400 then you need to pay SECA tax and you can deduct 50% or a
little over more 505 of SECA tax onn 1040 line 27.
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