Self Employment and Social Security Credits - detail question

[better late]

I am helping a self-employed family member with their 2019 taxes.

We are trying to take the allowable deductions but also get their income high enough to get 4 social security credits for 2019. As I understand it, the year's income would need to be over $5440  ($1360x4 quarters) for 2019. Am I thinking about this correctly?

Does anyone know which line on which form SS uses to determine if you are over the threshold for earning the 4 credits?
Schedule C line 31?
Schedule SE line 4 (subtracts the 1/2 SE tax)?

Thanks in advance

[terran]

I just checked my social security earnings record and it matches line 4 of my Schedule SE.

However, I'm not so sure claiming business deductions is really optional. It's a little dated, so you could look up more current versions of the tax codes and publications cited, but https://www.nafcc.org/Must-I-Claim-Allowable-Deductions might give you a start.

[seattlecyclone]

Right, claiming legitimate deductions is required, largely because there are cases where someone can be better off claiming a higher business income due to earned income credits and other things.

[Wile E. Coyote]

There are some optional methods for figuring earnings subject to SE tax that may be helpful to your family member if they don't get there using the regular method.  Take a look here ath the Nonfarm and Farm Optional Methods:

https://www.irs.gov/publications/p334#en_US_2019_publink1000313622

[better late]

I just checked my social security earnings record and it matches line 4 of my Schedule SE.

However, I'm not so sure claiming business deductions is really optional. It's a little dated, so you could look up more current versions of the tax codes and publications cited, but https://www.nafcc.org/Must-I-Claim-Allowable-Deductions might give you a start.

Thank you SO much for taking the time to look at both your SS record and your tax return - I really appreciate it. Tremendously helpful and sets my mind at ease.

My relative was just on the edge of getting the 4 credits before I realized a mistake I had made; correctly it put them firmly over the cut-off.

[better late]

Right, claiming legitimate deductions is required, largely because there are cases where someone can be better off claiming a higher business income due to earned income credits and other things.

That’s good to know and interesting to know *why*  you would need to take the deductions.

[better late]

There are some optional methods for figuring earnings subject to SE tax that may be helpful to your family member if they don't get there using the regular method.  Take a look here ath the Nonfarm and Farm Optional Methods:

https://www.irs.gov/publications/p334#en_US_2019_publink1000313622

I had looked at the optional method and tried to decode whst it said. It is correct that a person would have had to have had several years of self employment income to use this method?