On $80,000 of profit with no W-2 wages, net earnings are $73,880.00 and Schedule SE tax is $11,303.64. Half of that, $5,651.82, is the above-the-line deduction.
Schedule SE tax
$11,303.64
Schedule SE tax is $11,303.64.
How the total splits
Self-employment tax is 12.4% Social Security plus 2.9% Medicare on 92.35% of net profit. W-2 Social Security wages use the $184,500 base first. Half of this tax is deductible. The 0.9% Additional Medicare Tax is separate and is not part of the Schedule SE line.
| Net earnings (92.35%) | $73,880.00 |
|---|---|
| Social Security, 12.4% | $9,161.12 |
| Medicare, 2.9% | $2,142.52 |
| Schedule SE tax | $11,303.64 |
| Deductible half | $5,651.82 |
| Additional Medicare Tax | $0.00 |
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Net earnings = profit × 92.35%. SE tax = 12.4% of the wage-base room + 2.9% of net earnings.
Schedule SE starts from net profit. Multiply by 92.35%. If the result is under $400, self-employment tax is zero. Social Security is 12.4% of those net earnings, but W-2 Social Security wages use the $184,500 wage base first. Medicare is 2.9% of net earnings with no cap.
The deductible half is half of the Schedule SE tax. The 0.9% Additional Medicare Tax is not a Schedule SE line. It is on Form 8959 and starts when net earnings plus wages pass $200,000 ($250,000 joint, $125,000 married filing separately).
| Net earnings | $73,880.00 |
|---|---|
| Schedule SE tax | $11,303.64 |
| Deductible half | $5,651.82 |
Net earnings are the 92.35% line. Social Security and Medicare are the two parts that add to the self-employment tax. The deductible half is the amount that moves to Schedule 1. The form's short and long versions reach the same tax for a single business.
No. Church employees who have elected Social Security use a different base. This page is for Schedule C and partnership self-employment income.
W-2 Social Security wages fill the $184,500 base first. Self-employment Social Security applies only to the room that is left. Medicare at 2.9% still applies to all net earnings.