What is Schedule SE?
Schedule SE, Self-Employment Tax, attaches to Form 1040 and computes the 15.3% tax (12.4% Social Security + 2.9% Medicare) on net earnings from self-employment. It applies on top of regular income tax — the single most common surprise for first-year freelancers.
Two softeners are built in: only 92.35% of your net profit is subject to the tax (mirroring the employer-side exclusion employees get), and you deduct half of the SE tax as an adjustment to income on Schedule 1. The Social Security portion also stops at the annual wage base; the Medicare portion has no cap.
Who files Schedule SE?
- Anyone with $400+ of net self-employment earnings — the threshold that makes Schedule SE mandatory.
- Schedule C filers — net profit flows straight from Schedule C to Schedule SE.
- General partners with self-employment income on their K-1.
- Church employees with $108.28+ in wages (a special rule on the form).
Deadlines
Files with your Form 1040 by the April deadline. Because SE tax isn't withheld by anyone, it's a major reason self-employed filers make quarterly estimated payments — the 1040-ES worksheet includes it.
How to fill out Schedule SE
Start with net profit
Carry the bottom line from Schedule C (or K-1 self-employment earnings) onto Schedule SE.
Multiply by 92.35%
This adjustment excludes the "employer half" equivalent from the tax base.
Apply the rates
12.4% Social Security on earnings up to the annual wage base, plus 2.9% Medicare on everything. High earners add the 0.9% Additional Medicare Tax via Form 8959.
Deduct half
One-half of the SE tax goes on Schedule 1 as an above-the-line deduction — it reduces income tax, though not the SE tax itself.
Carry the tax to Schedule 2
The SE tax total lands on Schedule 2 and adds to your 1040 bill.