topic Re: Schedule SE in Deductions & credits

Schedule SE

SueFranM — Wed, 10 Feb 2021 16:13:03 GMT

Schedule SE, Part II, Line 10 shows self-employment tax as $512.00 (total social security amount) ; Schedule 1, Part II, Line 14 shows deductible amount as $256.00. 1040-SR, Page 3, Line 24, Shows $512.00 as the the tax due. This should be $256 Correct??

Re: Schedule SE

JohnB5677 — Wed, 10 Feb 2021 16:44:41 GMT

No, your total tax due is $512.

On Schedule SE, Part II, you should look at line 12. That is the total self-employment tax including both Social Security and Medicare.
Line 13 of Schedule SE, Part II is 1/2 of line 12. This is because as self-employed you pay both your portion and the employer's portion of the self-employment tax. You get a deduction for the employer portion. (This carries over to Schedule 1, Part II, Line 14).
Schedule 1, Part II, Line 14 is a deduction. It reduces the amount of income that you will pay tax on. It does not directly reduce the tax you owe.
Finally, 1040-SR, Page 3, Line 23, correctly shows $512.00 as the the tax due.

Re: Schedule SE

SueFranM — Wed, 10 Feb 2021 18:53:54 GMT

Thank you! After I sent the email, I realized I was having a brain cramp. All is good. Thanks again