Form 1040 SE

1040 Form Schedule SE is otherwise known as, “Self Employment tax”. This form is accomplished by self-employed taxpayers who have no less than $400 net earnings for the taxable year.

Self-employed individuals include:

  • An independent contractor.
  • Member of partnership
  • Sole proprietor
  • Works for their own business (farm or non-farm)
  • Engaged in share farming

Other income and losses integrated in net earnings for self-employed taxpayers include the following:

  • Farm rentals. It is included only if the taxpayer is involved in farm management and production.
  • Payments from tenants for services and convenience provided.
  • Remuneration received from the Department of Agriculture for your participation in land diversion.
  • Income from direct selling or retail of newspapers and magazines.
  • Renewal, deferred or percentage commissions received by self-employed or retired insurance agents.

It also includes income from working in a fishing boat with less than 10 crew members, professional fiduciary fees and other interests received in the course of dealing or business. SSA also uses Schedule SE to determine the social security benefits of an individual regardless if the latter is already receiving Medicare and social security benefits or not. Taxpayers with little net losses or profits from any trade or business may also use this form to pay the Social Security System.

Categories: Tax Return Forms. 1040 Schedule SE helps an individual compute the self-employment tax burden on the earnings from self-employment.

Link to IRS website: http://www.irs.gov/pub/irs-pdf/f1040sse.pdf

 

Comments are closed.