My wife started selling stuff on eBay and made enough that in going through the business section of Turbo Tax it shows a self-employment tax amount - under Business Taxes. I see that Turbo Tax creates a schedule SE, but I am wondering, does the self-employment tax get deducted and sent off from within Turbo Tax when I file - do I need to do nothing basically? Or am I supposed to print something out like the schedule SE and submit the amount it shows with a check to the IRS? Never had to deal with that before, so I'm not sure how that process works once I enter her eBay sales and expenses in Turbo Tax.
The self-employment tax is calculated along with everything else that is on your tax return. It is not a separate payment. When all of your calculations are done, if you have tax due it will be on line 37, which you can pay in a variety of ways. If you are getting a refund it will be on line 35a.
If you have federal tax due you can pay by mailing your payment with the 1040V voucher, (which has the address printed on it, having the payment taken out of a designated bank account, or you can pay directly on the IRS website.
https://www.irs.gov/payments/direct-pay
https://ttlc.intuit.com/community/tax-payments/help/how-can-i-pay-my-federal-taxes/00/26212
You must pay your state tax due using the state’s preferred method of receiving payment. For most states that will be by making a payment to the state’s own tax website, or by mailing a check or money order.
https://ttlc.intuit.com/questions/1901670-how-do-i-contact-my-state-department-of-revenue
To apply for a payment plan with the IRS
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.
The SE tax is already included in your tax due or reduced your refund. It is on the 1040 Schedule 2 line 4 which goes to 1040 line 23. The SE tax is in addition to your regular income tax on the net profit.