What are the benefits on electing Option Self- Employment and what are the benefits of this?

Social security coverage.

The optional methods may give you credit toward your social security coverage even though you have a loss or a small amount of income from self-employment.

Credits affected by earned income.

Using the optional methods may qualify you to claim the earned income credit (EIC), additional child tax credit (ACTC), or child and dependent care credit or give you a larger credit if your net earnings from self-employment (determined without using the optional methods) are less than $6,560. Figure the EIC, ACTC, and child and dependent care credit with and without using the optional methods to see if the optional methods will benefit you.

Self-employed health insurance deduction.

The optional methods of computing net earnings from self-employment may be used to figure your self-employed health insurance deduction.

Other items affected by adjusted gross income (AGI).

Using the optional methods may decrease your AGI, which may affect your eligibility for credits, deductions, or other items that are subject to an AGI limit. Figure your AGI with and without using the optional methods to see if the optional methods will benefit you.