What is Schedule SE?
Schedule SE calculates self-employment tax — the self-employed person's equivalent of the employer and employee shares of Social Security (12.4%) and Medicare (2.9%) taxes. Total rate: 15.3% on 92.35% of net self-employment income.
SupportedKey Lines
| Line | Description | Source |
|---|---|---|
| Line 2 | Net profit from Schedule C | From Schedule C total net profit |
| Line 3 | Combined net SE income (C + F) | Floored at $0 |
| Line 4a | 92.35% of net earnings | Line 3 x 0.9235 |
| Line 8d | Total Social Security wages from W-2s | From W-2 Box 3 |
| Line 9 | SS wage base limit: $176,100 (2025) | Constant |
| Line 10 | Social Security tax on SE | 12.4% on remaining wage base |
| Line 11 | Medicare tax on SE | 2.9% on all SE income |
| Line 12 | Total self-employment tax | Line 10 + Line 11 → Schedule 2 Line 4 |
| Line 13 | Deductible half of SE tax | Line 12 x 50% → Schedule 1 Line 15 |
How PaisaTax Handles It
- Fully computed — activates when Schedule C or Schedule F has a net profit
- W-2 wage offset: If the taxpayer also has W-2 wages, those count first against the $176,100 Social Security wage base. SE income only pays SS tax on the remaining amount.
- Half deduction: Half of SE tax is an above-the-line deduction that reduces AGI