Does capital loss offset self employment tax?
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Q&A: Does capital loss offset self employment tax?
I have a capital loss from stock trades, and I do some transcription work and have 1099 income. The stock trade losses exceepd my 1099 income, but Turbotax is telling me I owe self employment tax. How can I get the trade losses to reduce or wipe out this self employment tax?
ANSWER:
Answer by bostonianinmo
You can use up to ,000 in the losses to offset other income. It won’t directly offset the self-employment taxes however, just the net income for income tax purposes.
Answer by Judy
The capital loss can only take your income tax to zero. Self employment tax is separate, and a capital loss can’t offset the se tax you owe.
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