Schedule SE

Schedule SE is a form used by self-employed individuals to calculate their self-employment tax, which consists of Social Security and Medicare taxes.

The form is filed with the individual’s federal income tax return (Form 1040) and allows taxpayers to report their net earnings from self-employment. It includes calculations for the amount of self-employment income subject to tax and determines the tax owed based on current rates. An example of its use is when a freelance graphic designer reports their income and expenses, then utilizes Schedule SE to compute the self-employment tax due based on their net earnings.