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1243. Summary Table for Optional Methods of Computing Non-Farm Self-Employment Income
The following table summarizes the effect of the optional method of computing the amount of self-employment income from a non-farm business to be reported for taxable years beginning after 1972:
|
If the gross farm income is... |
And the net farm profit is... |
Then the self-employment income to be reported is: | |
|---|---|---|---|
|
Regular method |
Optional method | ||
|
Under $600 |
Under $400 |
None |
None |
|
Under $600 |
$400 to $500 |
Actual net |
Actual net* |
|
$600 to $2,400 |
Under $400 |
None |
Two-thirds of gross |
|
$600 to $2,400 |
$400 to $1,599 |
Actual net |
Two-thirds of gross |
|
$600 to $2,400 |
$1,600 to $2,400 |
Actual net |
Actual net* |
|
More than $2,400 |
Under $400 |
None |
$1,600 |
|
More than $2,400 |
$400 to 1,599 |
Actual net |
$1,600 |
|
More than $2,400 |
$1,600 and over |
Actual net |
Actual net* |
* Option cannot be used because an individual using the non-farm option may not declare less than actual net earnings from self-employment.
Last Revised: March, 2001
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