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Schedule SE, Self-Employment Tax
is used by
self-employed persons to figure self-employment tax on their net
earnings. Self-employment income is generally net profit from sole
proprietorships, and earned income from partnerships. The
self-employment tax funds the social security and Medicare benefits of
the self-employed person since social security and Medicare taxes (FICA)
are only withheld from the wages of the employee.
Schedule SE is filed with Form 1040. Anyone whose net earnings
from self-employment are $400 or more must file. Only one Schedule
SE is filed per individual. A person may have income from more
than one Schedule C or Partnership K-1; nevertheless, he or she combines
all self-employment income on one Schedule SE. A husband and wife
cannot file a joint Schedule SE. If they are partners in a
business, each will have a K-1 and each will report the earned income on
his or her own Schedule SE. |
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