What is Form Schedule SE?
Schedule SE calculates the Social Security and Medicare tax the self-employed owe on their net earnings — the 15.3% self-employment tax. Half of it is deductible on your 1040.
Here's the math that catches first-year freelancers off guard: you multiply net profit by 92.35%, then apply 15.3%. On $50,000 of profit that's about $7,065 of self-employment tax — completely separate from, and on top of, your income tax. The one bit of relief is that you deduct half of it as an adjustment to income.
Who files it
Anyone with $400+ of net self-employment income from Schedule C or a partnership K-1.
When it's due
Form Schedule SE is generally due With Form 1040 (April 15). Deadlines can move for weekends and holidays, so confirm the exact date for the current year on IRS.gov.
Key lines and parts
Here's what you'll actually fill in on Form Schedule SE:
- Net self-employment earnings (× 92.35%)
- 12.4% Social Security portion up to the wage base
- 2.9% Medicare portion on all earnings
- Deduction for one-half of SE tax
How to file
Carry net profit from Schedule C, compute SE tax, and report it on your 1040. The deductible half reduces your income tax.