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mpaints-mm
New Member

Is the calculated amount of my self-employment tax a completely different and separate debit from my federal tax due amount?

for example: in the top left corner of my screen, the turbotax calculation for my federal tax due is $1,564. Under my business profile portion of my return, i see an item for self-employment tax @ $1,719. Is this a tax that i pay additionally and seperately?, or is this part of the calculated federal tax due?
3 Replies
Carl
Level 15

Is the calculated amount of my self-employment tax a completely different and separate debit from my federal tax due amount?

No, it's not separate in the TurboTax program. The program shows your total tax liability (or refund if due) that includes your SE tax from the SCH C.

VolvoGirl
Level 15

Is the calculated amount of my self-employment tax a completely different and separate debit from my federal tax due amount?

Self Employment tax (Scheduled SE) is generated if a person has $400 or more of net profit from self-employment on Schedule C.  You pay 15.3% for 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 line 27 of the 1040.  The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 line 57.  The SE tax is in addition to your regular income tax on the net profit.

Carl
Level 15

Is the calculated amount of my self-employment tax a completely different and separate debit from my federal tax due amount?

That's not what he's asking. He wants to know if the total displayed by the program (that he owes to the IRS) includes the SE tax also. Yes it does. But since he's not done with the return yet, he probably hasn't gotten to the section where he enters the quarterly taxes paid in 2016. So that total will change and will hopefully go down and become a positive number for what the IRS owes him.
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