Why am I paying self-employment tax?
Most often, it’s because you entered self-employment income, either as cash or from a 1099-MISC or 1099-K form. If your self-employment income is $400 or more, after deducting expenses, you'll have to pay self-employment tax.
Other, less common reasons to pay self-employment tax:
- You have clergy income.
- Your income as a church employee exceeds $108.28.
- You received income from a partnership (Schedule K-1).
- The income on your 1099-MISC is incorrectly reported as self-employment income, Box 7. (Contact the payer to have them issue you a corrected 1099-MISC.)
Self-employment tax and income tax are two separate taxes. You can owe self-employment tax even if you don't need to pay income tax.