Yes, I posted the non employee compensation as stated on the form on the worksheet, and the Turbo Tax program did not product SE Tax.. Since the income was from a random, one time, sporadic activity, I thought the Turbo Tax program was correct in not computing SE tax. Here is the research I found on the subject:
SE tax applies only to individuals who engage in a trade or business. So, if you’re not regularly self-employed and you earn income from some random work, occurrence or one-off circumstance, you don’t owe SE tax — even if the income would be subject to SE tax if you were regularly self-employed in that activity.
You don’t owe SE tax unless the net income in question is from a trade or business. In the landmark Groetzinger case, the US Supreme Court ruled that an activity must be conducted with “continuity and regularity” and with a “profit motive” to incur SE tax. Therefore, income earned from an isolated or sporadic activity isn’t generally subject to SE tax because the random activity doesn’t rise to the level of a trade or business.
I guess the most confusing part is that Turbo Tax did not produce a self-employment tax based on my input.
