Schedule SE walkthrough (Self-Employment Tax)
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- Опубликовано: 16 авг 2023
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Please feel free to check out our article, where we've written step by step instructions to help you walk through this tax form! www.teachmepersonalfinance.co...
If you’re looking for tutorials for other IRS Forms that you can file directly through the IRS website, check out our free fillable forms page: www.teachmepersonalfinance.co...
Here are links to the other tax articles and videos we've created on forms and schedules mentioned in the video:
IRS Form 4361, Exemption from Self-Employment Tax
Article: www.teachmepersonalfinance.co...
Video: • IRS Form 4361 walkthro...
IRS Form 4029, Exemption from Medicare & Social Security
Article: www.teachmepersonalfinance.co...
Video: • IRS Form 4029 walkthro...
IRS Form 4137: Taxes on Unreported Tip Income
Article: www.teachmepersonalfinance.co...
Video: • IRS Form 4137 Walkthro...
IRS Form 8919: Uncollected Social Security & Medicare Taxes
Article: www.teachmepersonalfinance.co...
Video: • IRS Form 8919 walkthro...
Who Must File Schedule SE
You must file Schedule SE if:
The amount on line 4c of Schedule SE is $400 or more, or
You had church employee income of $108.28 or more. (Income from services you performed as a minister, member of a religious order, or Christian Science practitioner isn't church employee income.) See Employees of Churches and Church Organizations, later.
Exception to filing Schedule SE. If you filed Form 4029 or Form 4361 and received IRS approval, you may not need to file Schedule SE. See Ministers, Members of Religious Orders, and Christian Science Practitioners and Members of Certain Religious Sects, later, for information on how to report your self-employment earnings.
As someone trying to figure out etsy taxes, thank you for this
Im' glad it was helpful!
Thank you very much very helpful 🙏🤍
Thank you Sir
Would you have to file separate SE forms if you do business on multiple platforms? I know we do for Schedule C but confused with SE.
From the Schedule SE instructions:
If you had two or more businesses subject to SE tax, your net earnings from self-employment are the combined net earnings from all of your businesses. If you had a loss in one business, it reduces the income from another. Figure the combined SE tax on one Schedule SE.
For line 17 above, say I had $400 gross of nonfarm income from my Schedule C line 31 would I multiple $400 by 0.67 and then put $268 down on line 17 and line 4b of the above Schedule SE since it was 2/3 of? Like, do you multiple your Sch. C Line 31 number by 2/3 since it says "two-thirds of gross nonfarm income..."? Thanks!
These instructions are little confusing, but let me see if I can straighten this out:
To use the nonfarm optional method, you must meet the following criteria:
(a) your *net* nonfarm profits were less than $7,103, and also less than 72.189% of your *gross* nonfarm income, and
(b) you had net earnings from self-employment of at least $400 in 2 of the prior 3 years.
Assuming you qualify, the amount you enter into Line 17 requires a *different* calculation. You would enter 2/3 times the *gross* nonfarm income, which actually comes from Line 7 on your Schedule C. Net nonfarm income comes from Line 31, but you would use the Line 7 amount for the actual calculation. Or the amount from Line 16, whichever is smaller.
I don't have a W2 or any unreported tips subject to SS tax from another job- would I just enter 0 in line 8a?
Yes, you would enter 0 in Line 8a if you don't have a W-2 job. If you don't have unreported tips from Form 4137, you would enter 0 on Line 8b as well.
IRS Form 4137, Taxes on Unreported Tip Income
Article: www.teachmepersonalfinance.com/irs-form-4137-instructions/
Video: ruclips.net/video/H1wUJFUNaGY/видео.html
How do I fill out out a tax form if I received a 1099 with an income received of 11,000 earned. Also I have a 9 to 5 job as well. How do I do both?. I heard I can deduct half.
If you're reporting 1099 income as compensation you earned as an independent contractor, then you would follow the instructions outlined on IRS Form 1099-NEC (see links below). In general, you would report this information on Schedule C of your tax return. Schedule C should then help you calculate self-employment tax on Schedule SE.
You would report wage income reported on Form W-2 directly on your form 1040. You can enter your wage income and 1099 income on the same tax return. You'll want to be careful about the amount of Social Security tax your employer withheld, so you can factor this into your calculations and avoid double-paying your Social Security tax.
You can deduct up to 1/2 of the self-employment taxes that you paid as your own employer (see Line 13 of Schedule SE). This will go onto Schedule 1 as an adjustment to income (reduces your taxable income and AGI).
Below are links to articles and videos we created on these forms:
IRS Form 1099-NEC, Nonemployee Compensation
Article: www.teachmepersonalfinance.com/irs-form-1099-nec-instructions/
Video: ruclips.net/video/8wE6sD3TVNE/видео.html
IRS Schedule C, Profit or Loss from Business
Article: www.teachmepersonalfinance.com/irs-schedule-c-instructions/
Video: ruclips.net/video/T3KYF24chIg/видео.html
IRS Schedule 1, Additional Income and Adjustments to Income
Article: www.teachmepersonalfinance.com/irs-schedule-1-instructions/
Video: ruclips.net/video/TUMnegmniDI/видео.html
Self employment tax being a ´tax’, why is it deducted from gross income and not deducted from taxes payable?
For the same reason that FICA taxes are taken from your gross income if you're an employee. When you work for an employer, you pay 6.2% of Social Security earnings (up to the annual contribution limit) and 1.45% on Medicare earnings (unlimited earnings). Your employer pays the same amount on your behalf, even though you don't ever see it.
As an employer (self-employed), you end up paying both halves of this. However, you're able to deduct 1/2 of the FICA tax (Social Security and Medicare) from your Schedule C earnings, as the employer.
As an employee, you don't get a deduction, whether it's for another employer or on your Schedule SE.
@@teachmepersonalfinance2169 I think I got it a little. I am a CPA student so had this silly doubt, Thanks for helping.
Is church employee income (line 5a and 5b) can be considered something else? Or if it wasn’t given to me how can I determine that income?
According to the form instructions, church employee income is defined as wages that you received as an employee (other than as a minister, member of a religious order, or Christian Science practitioner) of a church or qualified church-controlled organization that has a certificate in place electing an exemption from employer Social Security and Medicare taxes.
According to the IRS, if you had church employee income of $108.28 or more, you must pay SE tax. This would be reported on your Form W-2.
IRS Form W-2, Wage and Tax Statement
Article: www.teachmepersonalfinance.com/irs-form-w-2-instructions/
Video: ruclips.net/video/6pQF29rrizc/видео.html
@@teachmepersonalfinance2169 oh wow! I wasn’t paying attention to the words “other than” thank you so much for explaining!
As a guy who made about 9k last year, (was paid cash and have no company) and claiming no deductions....am I filling out the 1040, Schedule C and SE forms? And how many lines am I leaving blank of entering zero in, most?
You should complete Schedule C, which will then feed the Form 1040 and Schedule SE forms.
I filled out Schedule C and SE..but when it comes time to fill out the form 1040 nothing applies...nothing fits...I made less than the standard deduction, so if I claimed the standard deduction, I would not get my 4 social security credits for the year, right? (because I wouldn't be paying taxes)? I don't know what else to do other than send in the C, SE and unfilled out 1040 form, (other than my name and address on it). I need to get my 4 social security credits for 2023 more than I need the standard deduction. Sure wish there was a video on my situation. @@teachmepersonalfinance2169
I filled out C and SE but none of that fits in the 1040 form, if I take the standard deduction then I wouldn't pay taxes (13,850 - 9k= nothing). I need to get my social security credits for 2023 but the 1040 form is not giving me any options to pay on what little money I made in 2023. All I can think to do is mail in the C, SE forms and leave the 1040 mostly blank other than my name and address info. Otherwise how do I get my 4 social security credits for the year? @@teachmepersonalfinance2169