Yes, I agree with Kris. The tax credit is applied as a deduction to line 44 tax (on taxable income) but the self-employment tax is then added on line 56. But the same is true of all other deductions, exemptions, and credits too. And it doesn't change the fact that if someone has no taxable income they won't get the credit. I'm self-employed and have happily used the RE credit. I'm also certainly not qualified to give anyone tax advice, but I do love to do my taxes with pencil and paper every year so I can see exactly what the heck is going on instead of letting software do the crunching! Plus in NC there is no software/e-filing that can handle the state RE credit, it has to be on paper.
Cheers, Rebekah
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