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Summary Table for Optional Methods of Computing Farm Self-Employment Income

Excerpted from "Social Security Handbook". See the up-to-date, official Social Security Handbook at ssa.gov.

1241. Summary Table for Optional Methods of Computing Farm Self-Employment Income

The following table summarizes the effect of the optional method of figuring the amount of self-employment income to be reported when all your earnings are from farm self-employment for taxable years beginning after 1965:


Optional Method: Farm Self-Employment Income

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 $599

Actual net

None

$600 to $2,400

Under $400

None

Two-thirds of gross

$600 to $2,400

$400 to $2,400

Actual net

Two-thirds of gross

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.

Last Revised: March, 2001

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