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What is Schedule SE?

What is Schedule SE?

Schedule SE is used to report your self-employment taxes. The self employment tax form is in addition to your regular Form 1040 [1] and business Schedule C for profit or loss.

When do you use Schedule SE?

You must fill out Schedule SE if you earned $400 or more from your self-employed position. For church employees, this amount is $108.28 or more. Your self employment is subject to self employment tax.

What is Self Employment Tax?

The self-employment tax is for independent contractors and self-employed individuals who do not get taxes taken out of their salary already. Since there is no withholding for Medicare or Social Security [2], you pay the self-employment tax.

How to Calculate Self Employment Tax

To determine the amount you need to pay on Schedule SE use the following formula to calculate your self-employment tax [3].

IRS Schedule SE Forms

While you are figuring out your net income, you can deduct items you have purchased or other costs related to your work. Here is a list of common tax deductions for the self-employed [7].

More Self Employed Tax Topics