Schedule SE, Self-Employment Tax
Use Schedule SE (Form 1040) to figure the tax due on your net earnings from self-employment.
The Social Security Administration uses the information from Schedule SE to figure your benefits under the social security program.
This tax applies no matter how old you are and even if you are already getting social security or Medicare benefits.
You must pay SE tax if you had net earnings of $400 or more as a self-employed person. If you are in business for yourself (either farm or nonfarm), you are self-employed.
You must also pay SE tax on your share of certain partnership income and your guaranteed payments.
TurboTax determines what partnership income or guaranteed payments are subject to the self-employment tax when you enter information from your partnership K-1. For more information about Schedule K-1, see Schedule K-1, Partner/Shareholder/Beneficiary Share of Income, Deductions, Credits, etc.
As a general rule, you must file Schedule SE if:
- You had net earnings of $400 or more as a self-employed person, or
- You had church employee income of $108.28 or more. Income from services you performed as a minister or a member of a religious order is not church employee income.
Yes! For more information, see Do I need to make estimated tax payments to the IRS?
If you had church employee income of $108.28 or more, you must pay self-employment tax.
Church employee income is wages you received as an employee (other than as a minister or member of a religious order) of a church or qualified church-controlled organization that has a certificate in effect electing an exemption from employer social security and Medicare taxes.
In most cases, you must pay self-employment tax on salaries and other income for services you performed as a minister, a member of a religious order who has not taken a vow of poverty, or a Christian Science practitioner.
However, if you filed IRS Form 4361 (Application for Exemption From Self-Employment Tax for Use by Ministers & others) and received IRS approval, you will be exempt from paying SE tax on those net earnings. In TurboTax, we’ll ask you questions about these services, Form 4361, and fill in all the right forms for you.
- Form 1040-ES, Estimated Tax for Individuals
- Do I need to make estimated tax payments to the IRS?
- How do I get credit for estimated tax payments?
- Self-Employment Tax on Clergy Income
- Schedule K-1, Partner/Shareholder/Beneficiary Share of Income, Deductions, Credits