The Schedule SE is automatically generated and calculated by TurboTax. The way to affect the amounts on your Schedule SE, is to change your reported income and expense amounts.
- If you're using the CD\Download version and your overriding the amounts on the form, you won't be able to e-file your return and it may be questioned by the IRS.
The self-employment tax, shows up on Schedule 2, line 4. You get to deduct half of it; that amount transfers over to Schedule 1, line 14.
Self-employment tax (SE tax) is the Social Security and Medicare tax paid by self-employed individuals. It is similar to FICA which is the Social Security and Medicare taxes withheld from an employee’s paycheck.
When you’re self-employed, you are paid the full amount you earn. Nothing is deducted from your check for Social Security and Medicare taxes. Instead, you make estimated tax payments during the year to pay your SE tax and your income tax. If you don’t make estimated tax payments, then you pay these taxes when you file your return.
If you’re self-employed, you can claim a federal deduction for half the SE tax you pay, which can help lower your taxes.
- The SE tax rate is 15.3% with 12.4% for Social Security and 2.9% for Medicare.
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