How to Fill Out Schedule SE Form 1040

Image Credit: Creatas/Creatas/Getty Images

If you earned more than $400 from self-employment activity, you must complete the From SE 1040 to determine your self-employment tax amount. Church employee income of more than $108.28 requires you complete the form as well. Additionally, a Limited Liability Company (LLC) member must use the Form SE 1040 to report earnings if the company pays him for a service. The Social Security Administration uses the calculations on the Form SE 1040 to determine your retirement benefits.

Step 1

Download the Form SE 1040 from the Internal Revenue Service (IRS) website. Print a copy and complete the required sections. Print a copy of the instructions for the form as well (See References).

Step 2

Read page one and follow the directions to determine which form to use. It will be the Short Schedule or the Long Schedule, depending on your situation.

Step 3

Add all earnings from your self-employment ventures. This may be farming, as shown on your Schedule F. Enter the total on the appropriate Line 1. Also include any Social Security benefits on the following line.

Step 4

Place net earnings or losses shown on your Schedule C if you have on Line 2. Add lines 1 through 2 together and place the total on Line 3.

Step 5

Multiply the total on Line 3 by .9235. This is the number that goes in Line 4 showing your net earnings from self-employment.

Step 6

Follow the instructions on Line 5 and multiply the number on Line 4 by the corresponding amount. For instance, earnings of $106,800 or less are multiplied by .153.

Step 7

Multiply Line 5 by .50 to get the deductions amount on Line 6. This is equal to one-half of your self-employment tax.

Tip

Gather all of your income documents before attempting to complete the Form SE.

Warning

If you find the form difficult, seek guidance from a tax professional.

references