Get IRS Instruction 1040 - Schedule SE 2023-2024

Use Schedule SE (Form 1040) to figure the tax due on net earnings from self-employment. The Social Security Administration (SSA) uses the information from Schedule SE to figure your benefits under the social security program.

This rate consists of 12.4% for social security and 2.9% for Medicare taxes. The maximum amount of net earnings subject to the 12.4% social security portion of the self-employment (SE) tax for 2023 is $160,200. All net earnings of at least $400 are subject to the Medicare part of the tax.

Deduction for one-half of self-employment tax. Enter the result here and on Form 1040, line 27, or Form 1040NR, line 27. One half of the self-employment tax amount from taxable income that's subject to income tax can be deducted here.

Usually, if you fill out Schedule C you'll also have to fill out Schedule SE, "Self-Employment Tax." You'll use this form to calculate your Social Security and Medicare tax based on your self-employment income and report it on Form 1040, Schedule 2 Part II, Other Taxes.

You calculate your self-employment tax on Schedule SE and report that amount in the "Other Taxes" section of Form 1040. In this way, the IRS differentiates the SE tax from the income tax.

This rate consists of 12.4% for social security and 2.9% for Medicare taxes. The maximum amount of net earnings subject to the 12.4% social security portion of the self-employment (SE) tax for 2023 is $160,200. All net earnings of at least $400 are subject to the Medicare part of the tax.

How to Fill Out Schedule SE Line 1a, 1b: Net farm profit or loss. ... Line 2: Net profit (or loss) from the Schedule C. ... Line 3: Add lines 1 and 2. Line 4: Multiply line 3 by 92.35%. ... Line 5: Church employee income. Line 6: The amount of church employee income that's taxable.

You must pay SE tax if you had net earnings of $400 or more as a self-employed person. If you are in business (farm or nonfarm) for yourself, you are self-employed. You must also pay SE tax on your share of certain partnership income and your guaranteed payments.