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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
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Experience:  Extensive Experience with Tax, Financial & Estate Issues
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If you have 1099 income of $100,000, but an NOL carryforward

Resolved Question:

If you have 1099 income of $100,000, but an NOL carryforward of $120,000 and after all deductions, your AGI is a negative number, do you have to pay self employment tax?
Submitted: 5 years ago.
Category: Tax
Expert:  Stephen G. replied 5 years ago.

Stephen E. Grizey :

Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything you don't understand.

Stephen E. Grizey :

Yes. The computation of self-employment tax is unaffected by any NOL carryforward or carryback.

Stephen E. Grizey :

Here's an article that references the applicable code sections.

Stephen E. Grizey :

http://www.taxresourcegroup.com/library/memo/1167.html

Customer:

is there an article that will show what expenses or items will lower my 1009 income for self employment tax?

Stephen E. Grizey :

After you complete a Schedule C to report your net profit from whatever you are doing as an independent contractor, and take whatever business expenses are applicable to your business, your self-employment tax is based upon the net profit from your business activity. There are no further reductions of your self-employment income for expenses.

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