Need to file?

[New York Enrolled Agent]

2nd guessing myself, never had this situation before. I know if there is any business income, people have to file for SE tax. In this case today, the people had a business loss and no other income except for social security. They don't need to file right??? I advised them to keep their records of business expenses, mileage, etc... Did I do this right?

Your question CANNOT be answered without knowing the "numbers".

What were the gross receipts from the business, the COGS and the other business operating expenses?

The $400 net-earnings threshold under §6017 is an additional filing requirement in addition to the filing requirements in §6012.

[JohnH]

You mean the NOL? These people won't need that I don't think!

No, I meant the SOL (Statute of Limitations).
There is always some benefit to knowing there is finality, especially if the client is relying upon our advice.
I'm VERY reluctant to ever tell a client they don't have a filing requirement.

[Super Mom]

What I am reading from the IRS says net self employment earnings of over $400, that would be after COGS right?

[taxmom34]

I believe that income for filing requirement for self employed or business is $400 before deductions.

[Super Mom]

You mean the NOL? These people won't need that I don't think!

[JohnH]

If they don't file, the SOL never runs. That could be a problem if there are questionable expenses, missing income, or other factors which alter the business income/loss in any meaningful way. If they do file, then any potential problem goes away after 3 years.

[Super Mom]

2nd guessing myself, never had this situation before. I know if there is any business income, people have to file for SE tax. In this case today, the people had a business loss and no other income except for social security. They don't need to file right??? I advised them to keep their records of business expenses, mileage, etc... Did I do this right?