Instructions For Schedule Se (Form 1040) - 2017

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Department of the Treasury
Internal Revenue Service
2017 Instructions for Schedule SE (Form 1040)
Self-Employment
Use Schedule SE (Form 1040) to figure the tax due on net earnings from self-employ-
ment. The Social Security Administration uses the information from Schedule SE to
Tax
figure your benefits under the social security program. This tax applies no matter how
old you are and even if you are already getting social security or Medicare benefits.
Additional information. See Pub. 225 or Pub. 334.
Section references are to the Internal
Even if you had a loss or a
earnings. If you had no other income
Revenue Code unless otherwise noted.
small amount of income from
subject to SE tax, enter “Exempt—Form
TIP
self-employment, it may be to
4361” on Form 1040, line 57, or Form
Future Developments
your benefit to file Schedule SE and use
1040NR, line 55. However, if you had
either "optional method" in Part II of
other earnings of $400 or more subject
For the latest information about devel-
Long Schedule SE (discussed later).
to SE tax, see line A at the top of Long
opments related to Schedule SE (Form
Schedule SE.
1040) and its instructions, such as legis-
Who Must Pay
lation enacted after they were published,
If you have ever filed Form
Self-Employment (SE) Tax
go to IRS.gov/ScheduleSE.
!
2031 to elect social security
coverage on your earnings as a
Self-Employed Persons
CAUTION
What's New
minister, you can’t revoke that election.
You must pay SE tax if you had net
Maximum income subject to social se-
If you must pay SE tax, include this
earnings of $400 or more as a self-em-
curity tax. For 2017, the maximum
ployed person. If you are in business
income on either Short or Long Sched-
amount of self-employment income sub-
(farm or nonfarm) for yourself, you are
ule SE, line 2. But don’t report it on
ject to social security tax is $127,200.
Long Schedule SE, line 5a; it isn’t con-
self-employed.
sidered church employee income. Also,
You also must pay SE tax on your
General
include on line 2:
share of certain partnership income and
Instructions
The rental value of a home or an
your guaranteed payments. See
Partner-
allowance for a home furnished to you
ship Income or
Loss, later.
(including payments for utilities), and
Who Must File Schedule SE
The value of meals and lodging
Employees of Churches and
You must file Schedule SE if:
provided to you, your spouse, and your
Church Organizations
The amount on line 4 of Short
dependents for your employer's conven-
If you had church employee income of
Schedule SE or line 4c of Long Sched-
ience.
$108.28 or more, you must pay SE tax.
ule SE is $400 or more, or
However, don’t include on line 2:
Church employee income is wages you
You had church employee income
Retirement benefits you received
received as an employee (other than as a
of $108.28 or more. (Income from serv-
from a church plan after retirement, or
minister, a member of a religious order,
ices you performed as a minister, mem-
The rental value of a home or an
or a Christian Science practitioner) of a
ber of a religious order, or Christian Sci-
allowance for a home furnished to you
church or qualified church-controlled or-
ence practitioner isn't church employee
(including payments for utilities) after
ganization that has a certificate in effect
income.) See
Employees of Churches
retirement.
electing an exemption from employer
and Church
Organizations.
If you were a duly ordained minister
social security and Medicare taxes.
Exception to filing Schedule SE. If
who was an employee of a church and
you filed Form 4029 or Form 4361 and
you must pay SE tax, the unreimbursed
Ministers, Members of Religious
received IRS approval, you may not
business expenses that you incurred as a
Orders, and Christian Science
need to file Schedule SE. See
Ministers,
church employee are allowed only as an
Practitioners
Members of Religious Orders, and
itemized deduction for income tax pur-
Christian Science Practitioners
and
poses. However, when figuring SE tax,
In most cases, you must pay SE tax on
Members of Certain Religious Sects
for
subtract on line 2 the allowable expenses
salaries and other income for services
information on how to report your
from your self-employment earnings and
you performed as a minister, a member
self-employment earnings.
attach an explanation.
of a religious order who hasn’t taken a
vow of poverty, or a Christian Science
If you were a U.S. citizen or resident
practitioner. But if you filed Form 4361
alien serving outside the United States
and received IRS approval, you will be
as a minister or member of a religious
exempt from paying SE tax on those net
order and you must pay SE tax, you
SE-1
Oct 05, 2017
Cat. No. 24334P

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