Self Employment tax line 7

[djmarya]

I am review my tax forms before I file and I noticed line 7 on the self-employment tax, Part 1 is a huge number. Where is that number calculated and what is included in that number?

[MayaD · Accepted solution]

Schedule SE line 7 is the maximum amount of combined wages and self-employment earnings subject to social security tax or the 6.2% portion of the 7.65% railroad retirement (tier 1) tax for 2020 .

For 2020, the first $137,700 of your combined wages, tips, and net earnings is subject to any combination of the Social Security part of self-employment tax, Social Security tax, or railroad retirement (tier 1) tax. 

[djmarya]

So it is a standard number and not anything to do with our numbers?

[RayW7 · Accepted solution]

That is correct, it is the maximum amount of earnings ($137,700) set by the IRS each year that will be subject to social security tax or railroad retirement (tier1).

For more detailed information see-

IRS: Self-Employment Tax (Social Security and Medicare Taxes)

[VolvoGirl]

Yes line 7 is prefilled on the Schedule SE.  See here is a blank IRS SE form

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