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Does your self employment tax come out of your refund? Or do you have to pay it separately ?

 
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2 Replies

Does your self employment tax come out of your refund? Or do you have to pay it separately ?

Your self-employment tax is calculated by the software.   If you are getting a refund, the SE tax has already been deducted.  If you are getting a tax refund it will be shown on line 35a  of your Form 1040.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
SharonD007
Employee Tax Expert

Does your self employment tax come out of your refund? Or do you have to pay it separately ?

It depends. The self-employment (SE) taxes (Social Security and Medicare) that you owe from your self-employment income is calculated in your total tax liability on your Form 1040. TurboTax calculates this for you.   If your total tax liability including your SE taxes is more than your estimated taxes paid and/or taxes withheld from other employment, you will get a refund and the SE tax has been deducted.  If you did not have withholding or you did not pay estimated taxes, you will have a balance due (which includes your SE tax) that you will have to pay when you file your tax return or by the end of filing season.

 

However, you do get a deduction for a portion of your self-employment taxes that are calculated. The SE taxes and deduction are calculated on Schedule SE.  For additional information, please see the TurboTax article Self-Employed Federal Income Taxes.

 

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