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Schedule SE Form 1040 for 2021 has a tax rate of 15.3% versus turbotax rate of 14.14%. Which one is correct?

 
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3 Replies

Schedule SE Form 1040 for 2021 has a tax rate of 15.3% versus turbotax rate of 14.14%. Which one is correct?

Where are you seeing 14.14%  Turbo Tax schedule SE matches the federal SE

https://www.irs.gov/pub/irs-pdf/f1040sse.pdf 

 

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment. You pay 15.3% SE tax on 92.35% of your Net Profit (If it is greater than $400). The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare (FICA). So you get social security credit for it when you retire.

Schedule SE Form 1040 for 2021 has a tax rate of 15.3% versus turbotax rate of 14.14%. Which one is correct?

The 15.3% SE tax is for the employer and employee portions of Social Security and Medicare taxes.  One-half of the SE taxes is entered as an adjustment to income.

 

Where are you seeing 14.14%?

Schedule SE Form 1040 for 2021 has a tax rate of 15.3% versus turbotax rate of 14.14%. Which one is correct?

Are you seeing less because the SE tax is really  15.3%  on 92.35% of your Net Profit?  That reduces it down to around 14%

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