Self-employment tax should only be calculated on your net...

I have rental income reported on Schedule E. TurboTax calculated self employment tax on my income. Is that correct?

Was SE tax calculated on the rental income because of my answers to the questions about my level of participation in the rental income? I also have business income reported on Schedule C and understand SE tax is due on that income.

posted

Self-employment tax should only be calculated on your net income from business, not your rental income. Revisit the income reported for the Rental and if you entered a 1099-Misc, check to see if you entered that income in Box 1 "Rents".

Please comment if you need additional help with this.