Instructions For Schedule Se (Form 1040) - 2009
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4Department of the Treasury
Internal Revenue Service
2009 Instructions for Schedule SE (Form 1040)
Use Schedule SE (Form 1040) to figure the tax due on net earnings from self-employment.
Self-Employment
The Social Security Administration uses the information from Schedule SE to figure your
benefits under the social security program. This tax applies no matter how old you are and
Tax
even if you are already getting social security or Medicare benefits.
Additional information.
See Pub. 225 or Pub. 334.
electing an exemption from employer so-
come exclusion or the foreign housing ex-
Section references are to the Internal
cial security and Medicare taxes.
clusion or deduction.
Revenue Code unless otherwise noted.
Ministers and Members of
See Pub. 517 for details.
Religious Orders
Members of Certain Religious
What’s New
In most cases, you must pay SE tax on sala-
Sects
ries and other income for services you per-
Maximum income subject to social security
If you have conscientious objections to so-
formed as a minister, a member of a
For 2009, the maximum amount of
tax.
cial security insurance because of your
religious order who has not taken a vow of
self-employment income subject to social
membership in and belief in the teachings
poverty, or a Christian Science practitioner.
security tax is $106,800.
of a religious sect recognized as being in
But if you filed Form 4361 and received
existence at all times since December 31,
Optional methods to figure net earnings.
IRS approval, you will be exempt from
1950, and which has provided a reasonable
For 2009, the amount of gross and net in-
paying SE tax on those net earnings. If you
level of living for its dependent members,
come from self-employment you may have
had no other income subject to SE tax,
you are exempt from SE tax if you received
when using the farm optional method or
enter “Exempt — Form 4361” on Form
IRS approval by filing Form 4029. In this
nonfarm optional method has increased.
1040, line 56. However, if you had other
case, do not file Schedule SE. Instead, enter
Electing taxpayers can secure up to four
earnings of $400 or more subject to SE tax,
“Exempt — Form 4029” on Form 1040,
credits of social security benefits coverage
see line A at the top of Long Schedule SE.
line 56. See Pub. 517 for details.
with $4,360 of net earnings in 2009. See
Optional Methods on page SE-4.
If you have ever filed Form
U.S. Citizens Employed by
2031 to elect social security
Foreign Governments or
coverage on your earnings as a
International Organizations
minister, you cannot revoke
General Instructions
that election.
You must pay SE tax on income you earned
as a U.S. citizen employed by a foreign
If you must pay SE tax, include this in-
Who Must File Schedule SE
government (or, in certain cases, by a
come on either Short or Long Schedule SE,
wholly owned instrumentality of a foreign
You must file Schedule SE if:
line 2. But do not report it on Long Sched-
•
government or an international organiza-
ule SE, line 5a; it is not considered church
Your net earnings from self-employ-
tion under the International Organizations
employee income. Also, include on line 2:
ment (see page SE-3) from other than
Immunities Act) for services performed in
•
church employee income were $400 or
The rental value of a home or an al-
the United States, Puerto Rico, Guam,
more, or
lowance for a home furnished to you (in-
American Samoa, the Commonwealth of
•
cluding payments for utilities), and
You had church employee income of
the Northern Mariana Islands, or the U.S.
•
$108.28 or more — see Employees of
The value of meals and lodging pro-
Virgin Islands. Report income from this
Churches and Church Organizations be-
vided to you, your spouse, and your depen-
employment on either Short or Long
low.
dents for your employer’s convenience.
Schedule SE, line 2. If you performed serv-
ices elsewhere as an employee of a foreign
However, do not include on line 2:
Who Must Pay
government or an international organiza-
•
Retirement benefits you received
Self-Employment (SE) Tax?
tion, those earnings are exempt from SE
from a church plan after retirement, or
tax.
•
Self-Employed Persons
The rental value of a home or an al-
Exception — Dual citizens.
A person with
lowance for a home furnished to you (in-
You must pay SE tax if you had net earn-
dual U.S.-foreign citizenship is generally
cluding payments for utilities) after
ings of $400 or more as a self-employed
considered to be a U.S. citizen for social
retirement.
person. If you are in business (farm or non-
security purposes. However, if you are a
farm) for yourself, you are self-employed.
If you were a duly ordained minister
U.S. citizen and also a citizen of a country
who was an employee of a church and you
with which the United States has a bilateral
You must also pay SE tax on your share
must pay SE tax, the unreimbursed busi-
social security agreement, other than Can-
of certain partnership income and your
ness expenses that you incurred as a church
ada or Italy, your work for the government
guaranteed payments. See Partnership In-
employee are allowed only as an itemized
of that foreign country is always exempt
come or Loss on page SE-3.
deduction for income tax purposes. How-
from U.S. social security taxes. For further
Employees of Churches and
ever, when figuring SE tax, subtract on line
information about these agreements, see
2 the allowable expenses from your
Church Organizations
the exception shown in the next section.
self-employment earnings and attach an ex-
If you had church employee income of
planation.
U.S. Citizens or Resident Aliens
$108.28 or more, you must pay SE tax.
Living Outside the United States
Church employee income is wages you re-
If you were a U.S. citizen or resident
ceived as an employee (other than as a min-
alien serving outside the United States as a
If you are a self-employed U.S. citizen or
ister or member of a religious order) of a
minister or member of a religious order and
resident alien living outside the United
church or qualified church-controlled or-
you must pay SE tax, you cannot reduce
States, in most cases you must pay SE tax.
ganization that has a certificate in effect
your net earnings by the foreign earned in-
You cannot reduce your foreign earnings
SE-1
Cat. No. 24334P
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