What is Schedule SE and when do I need to file it?

Schedule SE (Self-Employment Tax) is the IRS form used to calculate how much Self-Employment Tax you owe on your net Schedule C profit. You must file Schedule SE as part of your Form 1040 if your net self-employment income is $400 or more. **What Schedule SE calculates:** 1. Your net Schedule C profit (or loss) transferred from Schedule C 2. The SE Tax base (net profit × 92.35%) 3. Social Security Tax (12.4% up to the SS wage base) 4. Medicare Tax (2.9% with no cap) 5. Additional Medicare Tax (0.9% if SE income exceeds $200,000 single) 6. Total SE Tax owed 7. The deductible half of SE Tax (which flows to Schedule 1) **Short Form SE vs. Long Form SE:** Most self-employed individuals use the Short Form Schedule SE (simpler). If you have wages as a W-2 employee in addition to self-employment income, or have church employee income, use the Long Form to correctly calculate the Social Security wage base. **Total SE Tax flows to Form 1040 Schedule 2**, where it is added to your income tax liability. You must pay both SE Tax AND income tax — they are separate. **Filing threshold:** If your net self-employment income from all sources is less than $400, you do not owe SE Tax and do not need to file Schedule SE.

• Required if net SE income ≥ $400
• Calculates SE Tax (15.3%) on 92.35% of Schedule C net profit
• Half of SE Tax flows to Schedule 1 as an above-the-line deduction
• SE Tax added to Form 1040 Schedule 2 — in addition to income tax
• Use Short Form SE for most cases; Long Form if you also have W-2 wages