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🇺🇸 United States

Schedule SE Self-Employment Tax

Calculate Social Security & Medicare Tax

Easy ~10 min TaxSelf-EmployedSocial SecurityMedicare

/ What is this form?

Schedule SE calculates the self-employment tax (Social Security + Medicare) you owe on net self-employment income. The rate is 15.3% (12.4% Social Security on first $168,600 + 2.9% Medicare on all earnings). Employees split this with their employer, but self-employed people pay both halves.

/ Who needs this form?

  • Anyone with net self-employment income of $400 or more
  • Filed alongside Schedule C and Form 1040

/ What you need before you start

Net profit from Schedule C
Any other self-employment income

/ Step-by-step guide

1 Get Net Profit from Schedule C
Your net self-employment profit from Schedule C flows directly to Schedule SE. If you have multiple businesses, add all Schedule C profits together.
2 Calculate Net Earnings
Multiply your net profit by 92.35% (0.9235). This adjustment accounts for the employer-equivalent deduction built into the SE tax calculation.
3 Apply the Tax Rate
15.3% applies to net earnings up to the Social Security wage base ($168,600 in 2024). Above that, only 2.9% Medicare tax applies. An additional 0.9% applies above $200,000.
4 Enter on Form 1040
Your SE tax total goes on Schedule 2 of Form 1040. You also get to deduct half of the SE tax as an adjustment to income on your 1040.
5 Make Quarterly Estimated Payments
Pay estimated SE tax quarterly via Form 1040-ES to avoid underpayment penalties. SE tax is paid throughout the year, not just at filing.

/ Key fields explained

Field What to enter Common mistake
Net earnings from self-employment Net profit from Schedule C multiplied by 92.35% Forgetting to deduct the employer-equivalent half of SE tax on Form 1040 — this reduces your income tax

/ Common mistakes to avoid

Forgetting SE tax when calculating freelance profitability — it adds ~15.3% on top of income tax
Not deducting the employer-equivalent half on Form 1040 (this reduces your taxable income)

/ Frequently asked questions

How do I reduce SE tax?

Maximize business deductions on Schedule C to lower net profit. For consistently high earnings, consider an S-Corp election — distributions from S-Corps are not subject to SE tax.

Is SE tax in addition to income tax?

Yes. SE tax (15.3%) is separate from and in addition to federal income tax. You also get to deduct half of the SE tax when calculating your income tax.