Jose had actual net earnings of $400 or more during 2022 and 2023 from working with the Loteria. He meets the test for regular self-employment. He has used the nonfarm optional method less than 5 years. His earnings from the Loteria in 2024 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.