Answers · Individual tax · Form 1040
What Is Schedule SE?
Schedule SE computes Social Security and Medicare self-employment tax on qualifying net earnings.
How it works
The rule, and what it turns on.
Self-employment tax is separate from income tax. Sole proprietor profit and many partner earnings can be subject to it; S corporation pass-through income generally is not, while wages are subject to payroll taxes.
Example
$60,000 Schedule C profit generally enters the Schedule SE calculation, subject to the statutory formula and wage base.
Common mistakes
What we see go wrong, and what we do instead.
- Ignoring SE tax when estimating taxes.
- Using S corp distributions instead of reasonable wages.
A better approach
- Coordinate estimated payments and withholding.
Authority
Where this comes from, so you can check it.
IRC §§1401-1403; Schedule SE and instructions; IRS Publication 334.
Educational information, not individualized tax advice. Treatment depends on your facts, entity classification and tax year, and IRS instructions change. Confirm your own position with us before relying on it. Mint Associates does not provide legal services.
Also asked
The same question, the other ways people put it.
- What Is Self-Employment Tax?
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