Schedule SE, Self-Employment Tax
Schedule SE computes the Social Security and Medicare tax on your self-employment earnings, the counterpart of the payroll taxes an employer would normally split with you.
This is the genuine IRS PDF, unmodified. Source: IRS official page.
What is Schedule SE (Form 1040)?
Schedule SE takes your net self-employment earnings, usually from Schedule C, and applies the 15.3% self-employment tax: 12.4% Social Security up to the annual wage base plus 2.9% Medicare with no cap. Only 92.35% of net earnings are taxed, and half of the resulting tax comes back as an income adjustment on Schedule 1.
You owe it once net self-employment earnings reach $400 for the year, even if no income tax is due.
Who files Schedule SE (Form 1040)?
- Anyone with $400 or more of net self-employment earnings
- Church employees with $108.28 or more of church income
- Partners with self-employment income from a partnership
How to fill out Schedule SE (Form 1040)
- Carry your net profit from Schedule C (or partnership K-1) onto the form.
- Multiply by 92.35% to get earnings subject to the tax.
- Apply the Social Security and Medicare rates as the lines direct.
- Enter the tax on Schedule 2 and half of it as a deduction on Schedule 1, then download and attach the PDF to your 1040.
Quick fill Schedule SE (Form 1040) on this page
Prefer to see the form itself while you type? Open Schedule SE (Form 1040) in the editor to fill it on the actual pages, add a signature, and download.
Frequently asked questions
Why am I paying this on top of income tax?
It replaces the FICA taxes an employer would withhold and match. As your own employer you pay both halves, though half is deductible.
Does W-2 income reduce it?
Wages already subject to Social Security withholding use up part of the annual wage base, which can reduce the Social Security portion of your self-employment tax.