What Schedule SE is, in plain words
When you have a boss, Social Security and Medicare tax come out of each paycheck. Your boss pays the same amount again. When you work for yourself, you pay both halves. That's self-employment tax.
It's about 15% of your profit. That's on top of income tax. It's why people who work for themselves often owe more than they expect.
There is one break. Half of this tax comes off your income on Schedule 1. So you pay a little less income tax.
Schedule SE
What goes on every line
Tap any line to see what goes on it, with an example. A red dot means the number comes from a document sent to you. Most people use only some of these lines.
Schedule SE
2025
Your earnings
Social Security part
Medicare part
The tax, and the break
From a document sent to you Rare. We don’t fill it yet
Read all 10 lines as a list
- Line 2 Net profit from your business
- Your profit from every Schedule C you file.Comes fromSchedule C, line 31
- Line 3 Total
- Line 2, plus any farm profit on line 1a.
- Line 4a Earnings that count
- Line 3 times 92.35%. You only pay this tax on part of your profit, the same way a boss pays only on wages.Example: $16,000 of profit: $16,000 × 0.9235 = $14,776.
- Line 6 Earnings the tax is figured on
- Line 4a, after the less common lines. Under $400, there's no tax at all.
- Line 8a Social Security wages from a job
- Box 3 of your W-2s, if you also had a job. Your job already paid Social Security tax on this.
- Line 9 Room left under the cap
- Social Security tax stops at $176,100 a year. This is $176,100 minus line 8a.
- Line 10 Social Security tax
- 12.4% of line 6, or of line 9 if that's smaller.Example: $14,776 × 0.124 = $1,832.
- Line 11 Medicare tax
- 2.9% of line 6.Example: $14,776 × 0.029 = $429.
- Line 12 Self-employment tax
- Lines 10 and 11 added. This is the tax you owe on top of income tax.Example: $1,832 + $429 = $2,261.Goes to Schedule 2, line 4
- Line 13 Half of it comes off
- Half of line 12. It comes off your income, so you pay a little less income tax.Example: $2,261 ÷ 2 = $1,130.50.Goes to Schedule 1, line 15
What you need before you start
Gather these first. Then filling out Schedule SE is mostly copying numbers.
Documents sent to you
Forms you fill out first, if they apply
Each one ends in a total that goes on Schedule SE.
How to fill out Schedule SE
- 1
Finish Schedule C first
This form starts from your profit on Schedule C, line 31.
- 2
Check for a job too
Had a W-2 job as well? Put its box 3 on line 8a. It can lower your Social Security part.
- 3
Carry both numbers
Line 12 to Schedule 2. Line 13 to Schedule 1.
- 4
Plan for next year
If you'll owe this again, pay a little each quarter. It avoids a big bill and a penalty.
What’s next
Both numbers go on.
Questions people ask
What is self-employment tax?
It's Social Security and Medicare tax for people who work for themselves. It's 15.3% of 92.35% of your profit, so a bit over 14% of the profit.
Do I have to pay it if I made a little?
Not if your profit was under $400. You may still owe income tax, and you still report the income.
Why do I owe so much?
Nobody took this tax out during the year, the way a job does. So it all comes due in April, on top of income tax.
Do I pay it on a rental?
Usually not. Rent from a home goes on Schedule E, and self-employment tax doesn't apply to it.
Hand it over
Bring the documents. We fill in Schedule SE.
Start a return with the forms you have. You get a filled-in 1040 that you check, sign and mail. Free to start. The print-ready forms cost $99.