What is the difference between a schedule SE and a schedule ES

4 replies
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Whats the difference and are they both paid quarterly?

rjs

Level 15

There is no Schedule ES. I assume you mean Form 1040-ES.

Schedule SE is the form that is used to calculate the self-employment tax on your federal income tax return if you have self-employment income. It's part of the tax return that you file at the end of the year. The self-employment tax on Schedule SE is included in the total tax on your tax return.

Form 1040-ES is the form that's used to make quarterly payments of estimated tax.

outtakeAuthor

Level 2

so SE is whats left over from paying estimated taxes?

VolvoGirl

Level 15

No. Schedule SE is the self employment tax that the estimates are suppose to cover. The 1040ES quarterly estimated payments are just like withholding from your paychecks. They are not the tax.

The SE self employment tax is about 15.3% of your Net Profit on schedule C. And since you don't have withholding taken out from your business income you need to pay in some ES estimated payments so you don't end up owing too much on your tax return in April or you have to pay a penalty.