Deductions & credits

Turbo Tax does that automatically.  

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. So you get social security credit for it when you retire.

 

You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040.  It will be on Schedule 1 line 14 which goes to 1040 line 10a.


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.

For 2020 the max for Social Security is $8,537.40 on $137,700 of wages.