Question: In the current iteration of the Form 7202 page inside TaxSlayer, how do I elect to use the 2019 net earnings from self-employment?
Answer: To use 2019 net earnings from self-employment when calculating any applicable credit using Form 7202, the 2019 Net SE earnings MUST BE greater than the 2020 Net SE Earnings. If this is the case for your client, enter as a positive number, the difference between 2019 and 2020 Net SE Earnings into the “Adjust your net earnings from self-employment” field (shown below). The manually entered value will add to the already calculated 2020 Net SE Earnings and carry to Line 7 of Form 7202.
- To locate 2019 net self-employment earnings, in most instances, refer to Line 6 of the 2019 Schedule SE. You can also refer to Form 7202 instructions for additional guidance by clicking HERE.
For example: If the 2020 Net SE Earnings is $10,000, but in 2019 it was $17,000, the difference is $7,000. Inside the TaxSlayer application, $7,000 would be entered in the adjustment field. This would add to the $10,000 already calculated in the return and carry a total of $17,000 to Line 7 of Form 7202.
Note: We realize this is not intuitive and are working to improve the experience when electing to utilize 2019 Net SE Earnings for this credit.
