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dan-rdrgz01
New Member

I have self-employed income for the first time. Not sure how to pay self-employment tax and whether this is calculated in the Federal Tax Due in Turbotax. Is it?

 
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VolvoGirl
Level 15

I have self-employed income for the first time. Not sure how to pay self-employment tax and whether this is calculated in the Federal Tax Due in Turbotax. Is it?

Yes Turbo Tax includes it.  Did you fill out schedule C?

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 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 Schedule 1 line 27.   The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 Schedule 4 line 57 which goes to 1040 line 14.  The SE tax is in addition to your regular income tax on the net profit.

Do you need help entering your self employment income or expenses?  



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VolvoGirl
Level 15

I have self-employed income for the first time. Not sure how to pay self-employment tax and whether this is calculated in the Federal Tax Due in Turbotax. Is it?

Yes Turbo Tax includes it.  Did you fill out schedule C?

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 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 Schedule 1 line 27.   The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 Schedule 4 line 57 which goes to 1040 line 14.  The SE tax is in addition to your regular income tax on the net profit.

Do you need help entering your self employment income or expenses?  



VolvoGirl
Level 15

I have self-employed income for the first time. Not sure how to pay self-employment tax and whether this is calculated in the Federal Tax Due in Turbotax. Is it?

You can preview the 1040 or print the whole return <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing">...>
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