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February 24, 2025
Question

DO I HAVE TO PAY SELF EMPLOYMENT TAX?

  • February 24, 2025
  • 1 reply
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I AM A LANDLORD WITH PASSIVE ACTIVITY, DO I HAVE TO PAY SELF EMPLOYMENT TAX?

LAST YEAR ON 1040-SR LINE 23 = $0;  THIS YEAR I'M REQUIRED TO PAY $2490, WHY?

1 reply

February 24, 2025

You don't need to pay self-employment tax if you are renting out a property. You must have reported your rental activity in the self-employed income section as opposed to the rental income section. You may be able to delete the self-employment income entries by deleting your Schedule C:

 

1. Choose the Tax Tools option on your left menu bar while working on your return

2. Choose Tools

3. Choose the Delete a form option under Other Helpful links 

4. Find the Schedule C in the list and delete it

 

Then, enter your rental income and expenses in the Rental Properties and Royalties section:

 

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