TurboTax HelpTurboTax HelpIntuit

Why am I paying self-employment tax?

SOLVEDby TurboTax392Updated January 19, 2022

Most often, it’s because you entered self-employment income, either as cash or from a 1099-NEC, 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.


If you have a 1099 NEC or 1099-MISC

This could be self-employment income and you would pay taxes on it, on the conditions described above.

Not all 1099-NEC or 1099-MISC forms are from self-employment

Examples of income that are not from self-employment include prize money, lawsuit settlement, research study, and others. You don’t need to pay self-employment tax on these types of income. We’ll figure this for you when you enter your 1099s.

If your 1099-NEC or 1099-MISC is incorrectly reporting your income, you should contact the payer and have them issue a corrected 1099.

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.

Was this helpful?

You must sign in to vote, reply, or post
TurboTax Desktop BasicTurboTax Desktop BusinessTurboTax Desktop DeluxeTurboTax Desktop Home and BusinessTurboTax Desktop PremierTurboTax Live BasicTurboTax Live DeluxeTurboTax Live Full Service BasicTurboTax Live Full Service Complex IncomeTurboTax Live Full Service Complex Self-EmployedTurboTax Live Full Service DeluxeTurboTax Live Full Service PremierTurboTax Live Full Service Self-employedTurboTax Live PremierTurboTax Live Self-employedTurboTax Mobile Apps DeluxeTurboTax Mobile Apps FreeTurboTax Mobile Apps PremierTurboTax Mobile Apps Self-employedTurboTax Online DeluxeTurboTax Online FreeTurboTax Online PremierTurboTax Online Self-employed
Dynamic AdsDynamic Ads