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Category: Federal

Self-Employment Tax (Schedule SE)

Self-Employment Tax (Schedule SE)

Use Schedule SE (Form 1040) to figure the tax due on your net earnings from self-employment. The Social Security Administration uses the information from Schedule SE to figure your benefits under the social security program. This tax applies no matter how old you are and even if you are already getting social security or Medicare benefits.

 

Who must file a Schedule SE (Self- Employment Tax)?

 

  • You must file a Schedule SE if you had earnings from self-employment of $400.00 or more, or
  • You had church employee income of $108.28 or more. Income from services you performed as a minister or a member of a religious order is not church employee income.

 

Who must pay Self-Employment Tax?

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 non farm) for yourself, you are considered self-employed for tax purposes.

 

You must also pay SE tax on your share of certain partnership income and your guaranteed payments.

 

Employees of Churches and Church Organizations

If you had church employee income of $108.28 or more, you must pay SE tax. Church employee income is wages you received as an employee (other than as a minister or member of a religious order) of a church or qualified church-control-led organization that has a certificate in effect claiming an exemption from employer social security and Medicare taxes.

 

Ministers and Members of Religious Orders

In most cases, you must pay SE tax on salaries and other income for services you performed as a minister, a member of a religious order who has not taken a vow of poverty, or a Christian Science practitioner. But if you filed Form 4361 and received IRS approval, you will be exempt from paying SE tax on those net earnings.

 

If you were a U.S. Citizen or resident alien serving outside the United States as a minister or member of a religious order and you must pay SE tax, you cannot reduce your net earnings by the foreign earned income exclusion or the foreign housing exclusion or deduction.

 

How to enter in the program

From the Welcome to My Account Screen, select Federal Section from the navigation bar followed by Other Taxes>>>Self-Employment Tax (Schedule SE). Enter the applicable information as it applies to you.

 

Please Note: If you have prepared a Schedule C or Schedule F within your TaxSlayer account, we will automatically calculate the appropriate amount of self-employment tax based on the overall profit reported.

 

If you would like to view Line by Line Instructions on how to compete this form please Click Here.