Jose had actual net earnings of $400 or more during 2024 and 2025 from selling Loteria tickets. He meets the test for regular self-employment. He has used the nonfarm optional method less than 5 years. His earnings from selling Loteria tickets in 2026 are:

• Gross income $5,400
• Net profit $1,200

True or False? Jose may use either the regular method or the nonfarm optional method to compute his net earnings.