Schedule SE (1040) Self-Employment Tax

SCHEDULE SE

OMB No. 1545-0074

2007

Self-Employment Tax

(Form 1040)

Attachment
Sequence No.

Department of the Treasury
Internal Revenue Service

© Attach to Form 1040. © See Instructions for Schedule SE (Form 1040).
Name of person with self-employment income (as shown on Form 1040)
Social security number of person
with self-employment income ©

17

Who Must File Schedule SE
You must file Schedule SE if:
● You had net earnings from self-employment from other than church employee income (line 4 of Short Schedule SE or line 4c of
Long Schedule SE) of $400 or more, or
● You had church employee income of $108.28 or more. Income from services you performed as a minister or a member of a
religious order is not church employee income (see page SE-1).
Note. Even if you had a loss or a small amount of income from self-employment, it may be to your benefit to file Schedule SE and
use either “optional method” in Part II of Long Schedule SE (see page SE-4).
Exception. If your only self-employment income was from earnings as a minister, member of a religious order, or Christian Science
practitioner and you filed Form 4361 and received IRS approval not to be taxed on those earnings, do not file Schedule SE. Instead,
write “Exempt–Form 4361” on Form 1040, line 58.

May I Use Short Schedule SE or Must I Use Long Schedule SE?
Note. Use this flowchart only if you must file Schedule SE. If unsure, see Who Must File Schedule SE, above.
Did you receive wages or tips in 2007?
Yes

Yes

Was the total of your wages and tips subject to social security
or railroad retirement tax plus your net earnings from
self-employment more than $97,500?

No
Ä
Yes

Did you receive tips subject to social security or Medicare tax
that you did not report to your employer?

Yes

No
Ä
Ä

Yes

Ä

No
Ä
Did you receive church employee income reported on Form
W-2 of $108.28 or more?

Yes

Ä

No
Ä
Ä

Are you using one of the optional methods to figure your net
earnings (see page SE-4)?

Yes

Ä

Are you a minister, member of a religious order, or Christian
Science practitioner who received IRS approval not to be taxed
on earnings from these sources, but you owe self-employment
tax on other earnings?

Ä
Ä

Ä
Ä

No
Ä

No

Did you report any wages on Form 8919, Uncollected Social
Security and Medicare Tax on Wages?

No
Ä

Ä
Ä

You may use Short Schedule SE below

You must use Long Schedule SE on page 2

Section A—Short Schedule SE. Caution. Read above to see if you can use Short Schedule SE.
1
2

3
4
5

6

Net farm profit or (loss) from Schedule F, line 36, and farm partnerships, Schedule K-1 (Form
1065), box 14, code A
Net profit or (loss) from Schedule C, line 31; Schedule C-EZ, line 3; Schedule K-1 (Form 1065),
box 14, code A (other than farming); and Schedule K-1 (Form 1065-B), box 9, code J1. Ministers
and members of religious orders, see page SE-1 for amounts to report on this line. See page
SE-3 for other income to report
Combine lines 1 and 2
Net earnings from self-employment. Multiply line 3 by 92.35% (.9235). If less than $400,
©
do not file this schedule; you do not owe self-employment tax
Self-employment tax. If the amount on line 4 is:
● $97,500 or less, multiply line 4 by 15.3% (.153). Enter the result here and on
Form 1040, line 58.
● More than $97,500, multiply line 4 by 2.9% (.029). Then, add $12,090 to the result.
Enter the total here and on Form 1040, line 58
Deduction for one-half of self-employment tax. Multiply line 5 by
50% (.5). Enter the result here and on Form 1040, line 27
6

For Paperwork Reduction Act Notice, see Form 1040 instructions.

Cat. No. 11358Z

1

2
3
4

5

Schedule SE (Form 1040) 2007

Schedule SE (Form 1040) 2007

Attachment Sequence No.

Name of person with self-employment income (as shown on Form 1040)

17

Page

2

Social security number of person
with self-employment income 䊳

Section B—Long Schedule SE
Part I

Self-Employment Tax

Note. If your only income subject to self-employment tax is church employee income, skip lines 1 through 4b. Enter -0- on line
4c and go to line 5a. Income from services you performed as a minister or a member of a religious order is not church employee
income. See page SE-1.
A

If you are a minister, member of a religious order, or Christian Science practitioner and you filed Form 4361, but you
䊳
had $400 or more of other net earnings from self-employment, check here and continue with Part I

1

Net farm profit or (loss) from Schedule F, line 36, and farm partnerships, Schedule K-1 (Form
1065), box 14, code A. Note. Skip this line if you use the farm optional method (see page SE-4)

2

3
4a
b
c
5a
b
6
7
8a

b
c
d
9
10
11
12
13

1

Net profit or (loss) from Schedule C, line 31; Schedule C-EZ, line 3; Schedule K-1 (Form 1065), box
14, code A (other than farming); and Schedule K-1 (Form 1065-B), box 9, code J1. Ministers and
members of religious orders, see page SE-1 for amounts to report on this line. See page SE-3 for
other income to report. Note. Skip this line if you use the nonfarm optional method (see page SE-4)
Combine lines 1 and 2
If line 3 is more than zero, multiply line 3 by 92.35% (.9235). Otherwise, enter amount from line 3
If you elect one or both of the optional methods, enter the total of lines 15 and 17 here
Combine lines 4a and 4b. If less than $400, stop; you do not owe self-employment tax. Exception.
䊳
If less than $400 and you had church employee income, enter -0- and continue
Enter your church employee income from Form W-2. See page SE-1
5a
for definition of church employee income
Multiply line 5a by 92.35% (.9235). If less than $100, enter -0Net earnings from self-employment. Add lines 4c and 5b
Maximum amount of combined wages and self-employment earnings subject to social security
tax or the 6.2% portion of the 7.65% railroad retirement (tier 1) tax for 2007
Total social security wages and tips (total of boxes 3 and 7 on Form(s)
W-2) and railroad retirement (tier 1) compensation. If $97,500 or more,
8a
skip lines 8b through 10, and go to line 11
8b
Unreported tips subject to social security tax (from Form 4137, line 10)
8c
Wages subject to social security tax (from Form 8919, line 10)
Add lines 8a, 8b, and 8c
Subtract line 8d from line 7. If zero or less, enter -0- here and on line 10 and go to line 11 䊳
Multiply the smaller of line 6 or line 9 by 12.4% (.124)
Multiply line 6 by 2.9% (.029)
Self-employment tax. Add lines 10 and 11. Enter here and on Form 1040, line 58
Deduction for one-half of self-employment tax. Multiply line 12 by
50% (.5). Enter the result here and on Form 1040, line 27
13

Part II

2
3
4a
4b
4c

5b
6
7

97,500 00

8d
9
10
11
12

Optional Methods To Figure Net Earnings (see page SE-4)

Farm Optional Method. You may use this method only if (a) your gross farm income1 was not more
than $2,400, or (b) your net farm profits2 were less than $1,733.
14 Maximum income for optional methods
15 Enter the smaller of: two-thirds (2⁄3 ) of gross farm income1 (not less than zero) or $1,600. Also
include this amount on line 4b above

14

1,600 00

15

3

Nonfarm Optional Method. You may use this method only if (a) your net nonfarm profits were less
than $1,733 and also less than 72.189% of your gross nonfarm income,4 and (b) you had net earnings
from self-employment of at least $400 in 2 of the prior 3 years.
Caution. You may use this method no more than five times.
16 Subtract line 15 from line 14
17 Enter the smaller of: two-thirds (2⁄3 ) of gross nonfarm income4 (not less than zero) or the amount
on line 16. Also include this amount on line 4b above
1

2

16
17

From Sch. F, line 11, and Sch. K-1 (Form 1065),
box 14, code B.

3

From Sch. C, line 31; Sch. C-EZ, line 3; Sch. K-1 (Form 1065), box 14, code A; and
Sch. K-1 (Form 1065-B), box 9, code J1.

From Sch. F, line 36, and Sch. K-1 (Form 1065),
box 14, code A.

4

From Sch. C, line 7; Sch. C-EZ, line 1; Sch. K-1 (Form 1065), box 14, code C; and Sch.
K-1 (Form 1065-B), box 9, code J2.
Schedule SE (Form 1040) 2007