How do enter information in the Schedule SE Self-Employed tax form. I am a special case and need to calculate the self-employed tax working for an organization.

Forum|Forum|1 year ago
January 29, 2025
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BillM223

What kind of special case? Are you can employee of this organization?

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mkalfoglouAuthor

I work for an international organization and we pay estimate taxes. We then fill Schedule SE to calculate the Self-Employed tax, reduce it by 50% and then enter that number on Form 1040 Page 1 where it asks for "Adjustments to income from Schedule 1, line 26" . Turbo Tax is not showing me how to open that tax form and enter the numbers as they were done last year (by a CPA). This basically reduces the taxable income.

VolvoGirl

Employee

Turbo Tax does all that automatically. It will enter the 50%.

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment. You pay 15.3% SE tax on 92.35% of your Net Profit (If it is greater than $400). The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare (FICA). So you get social security credit for it when you retire. It is in addition to any regular income tax you owe on it.

The SE tax is already included in your tax due or reduced your refund. It is on the 1040 Schedule 2 line 4 which goes to 1040 line 23. The SE tax is in addition to your regular income tax on the net profit.

You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040. It will be on Schedule 1 line 15 which goes to 1040 line 10. And subtract the QBI Adjustment on 1040 line 13.