Line 12 on Schedule SE

Forum|Forum|5 years ago
February 21, 2021
8 replies
72 views

Hello,

this may sound very ignorant, but I just noticed line 12 on Schedule SE:

"Self-employment tax. Add lines 10 and 11. Enter here and on Schedule 2 (Form 1040), line 4 ."

What is Schedule 2 and do I need to file it if I'm filing jointly for 2020 taxes? I started freelancing in 2019 and didn't file this Schedule last year. Should I be worried and what is this schedule used for?

Thanks in advance for anyone who responds to my message.

🤗

VolvoGirl

Level 15

Yes it just one of the detail schedules that go to the 1040 instead of going directly to the 1040.

https://www.irs.gov/pub/irs-pdf/f1040s2.pdf

It was on 2019 also. Did you have a Net Profit on Schedule C last year? You only pay self employment tax on a Net Profit of $433 or more. Maybe you had a loss last Year?

https://www.irs.gov/pub/irs-prior/f1040s2--2019.pdf

rogo2020Author

Level 3

Yikes, this is a form which I didn't complete last year and therefore didn't file it with my Schedule C or SE.

What should I do?

Bsch4477

Level 15

That is your self employment tax. TurboTax handles this automatically generating the schedule and putting the amounts in the right places.

rogo2020Author

Level 3

what exactly does this form do being that I'm already filing Schedule SE and Schedule C?

VolvoGirl

Level 15

The 3 new schedules collect info from other forms and total them so there is less info to list on the 1040. The IRS is changing the line numbers every year now and adding new forms and schedules etc. Did you have a profit on Schedule C last year? If you didn't have Schedule 2 you didn't pay any self employment tax on Schedule SE.

VolvoGirl

Level 15

I see you had several questions last year when you started freelancing. Did you get your return including Schedule C filed ok? Did you make the 4 quarterly estimated payments to cover this year's self employment tax? Do you need to know where to enter them?

To enter Federal or State Estimated Taxes Paid, including a state estimated payment made in January for the prior year, go to

Federal on left or at top. Personal (Home & Business)

Deductions and Credits at top

Then scroll way down to Estimates and Other Taxes Paid

Estimated Taxes - click the start button

For 2020 Federal Estimated payments should be on 1040 line 26.

rogo2020Author

Level 3

Thanks for the response. Yes, I had several questions last year (LOL). I did file Schedule C and paid a lump sum at the end of the year--I was told by an accountant that because I file jointly and we have several properties, and my husband who's a W2 worker had Income tax withheld (Line 13 on the Estimated Tax Worksheet) that I don't owe taxes (which I suppose we'll get reimbursed for) . Could that be true or are the Estimated income tax and estimated to be withheld line (again, line 13) only apply to me (a freelancer). I suppose I get confused with figuring out if I should enter information on these forms for myself or because of the fact that we file jointly, do I enter information based for my spouse and I.