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Back taxes 12. Back taxes   Self-Employment Tax Table of Contents What's New for 2013 What's New for 2014 Introduction Topics - This chapter discusses: Useful Items - You may want to see: Why Pay Self-Employment Tax? How To Pay Self-Employment TaxReplacing a lost social security card. Back taxes Name change. Back taxes Penalty for underpayment of estimated tax. Back taxes Who Must Pay Self-Employment Tax?Limited partner. Back taxes Community property. Back taxes Figuring Self-Employment EarningsLandlord Participation in Farming Methods for Figuring Net EarningsRegular Method Farm Optional Method Nonfarm Optional Method Using Both Optional Methods Reporting Self-Employment Tax What's New for 2013 Tax rates. Back taxes  For tax years beginning in 2013, the social security part of the self-employment tax increases from 10. Back taxes 4% to 12. Back taxes 4%. Back taxes The Medicare part of the tax remains at 2. Back taxes 9%. Back taxes As a result, the self-employment tax is increased from 13. Back taxes 3% to 15. Back taxes 3%. Back taxes Additional Medicare Tax. Back taxes . Back taxes  For tax years beginning in 2013, a 0. Back taxes 9% Additional Medicare Tax applies to your Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income above a threshold amount. Back taxes Use Form 8959, Additional Medicare Tax, to figure this tax. Back taxes For more information, see the Instructions for Form 8959. Back taxes Maximum net earnings. Back taxes  The maximum net self-employment earnings subject to the social security part (12. Back taxes 4%) of the self-employment tax increased to $113,700 for 2013. Back taxes There is no maximum limit on earnings subject to the Medicare part (2. Back taxes 9%). Back taxes What's New for 2014 Maximum net earnings. Back taxes  The maximum net self-employment earnings subject to the social security part of the self-employment tax for 2014 will be discussed in the 2013 Publication 334. Back taxes Introduction Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. Back taxes It is similar to the social security and Medicare taxes withheld from the pay of most wage earners. Back taxes You usually have to pay SE tax if you are self-employed. Back taxes You are usually self-employed if you operate your own farm on land you either own or rent. Back taxes You have to figure SE tax on Schedule SE (Form 1040). Back taxes Farmers who have employees may have to pay the employer's share of social security and Medicare taxes, as well. Back taxes See chapter 13 for information on employment taxes. Back taxes Self-employment tax rate. Back taxes   For tax years beginning in 2013, the self-employment tax rate is 15. Back taxes 3%. Back taxes The rate consists of two parts: 12. Back taxes 4% for social security (old-age, survivors, and disability insurance) and 2. Back taxes 9% for Medicare (hospital insurance). Back taxes Topics - This chapter discusses: Why pay self-employment tax How to pay self-employment tax Who must pay self-employment tax Figuring self-employment earnings Landlord participation in farming Methods for figuring net earnings Reporting self-employment tax Useful Items - You may want to see: Publication 541 Partnerships Form (and Instructions) 1040 U. Back taxes S. Back taxes Individual Income Tax Return Sch F (Form 1040) Profit or Loss From Farming Sch SE (Form 1040) Self-Employment Tax 1065 U. Back taxes S. Back taxes Return of Partnership Income Sch K-1 (Form 1065) Partner's Share of Income, Deductions, Credits, etc. Back taxes See chapter 16 for information about getting publications and forms. Back taxes Why Pay Self-Employment Tax? Social security benefits are available to self-employed persons just as they are to wage earners. Back taxes Your payments of SE tax contribute to your coverage under the social security system. Back taxes Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits. Back taxes How to become insured under social security. Back taxes   You must be insured under the social security system before you begin receiving social security benefits. Back taxes You are insured if you have the required number of credits (also called quarters of coverage). Back taxes Earning credits in 2013. Back taxes   You can earn a maximum of four credits per year. Back taxes For 2013, you earn one credit for each $1,160 of combined wages and self-employment earnings subject to social security tax. Back taxes You need $4,640 ($1,160 × 4) of combined wages and self-employment earnings subject to social security tax to earn four credits in 2013. Back taxes It does not matter whether the income is earned in 1 quarter or is spread over 2 or more quarters. Back taxes For an explanation of the number of credits you must have to be insured and the benefits available to you and your family under the social security program, consult your nearest Social Security Administration (SSA) office or visit the SSA website at www. Back taxes socialsecurity. Back taxes gov. Back taxes Making false statements to get or to increase social security benefits may subject you to penalties. Back taxes The Social Security Administration (SSA) time limit for posting self-employment earnings. Back taxes   Generally, the SSA will give you credit only for self-employment earnings reported on a tax return filed within 3 years, 3 months, and 15 days after the tax year you earned the income. Back taxes    If you file your tax return or report a change in your self-employment earnings after the SSA time limit for posting self-employment earnings, the SSA may change its records, but only to remove or reduce the amount. Back taxes The SSA will not change its records to increase your self-employment earnings after the SSA time limit listed above. Back taxes How To Pay Self-Employment Tax To pay SE tax, you must have a social security number (SSN) or an individual taxpayer identification number (ITIN). Back taxes This section explains how to: Obtain an SSN or ITIN, and Pay your SE tax using estimated tax. Back taxes An ITIN does not entitle you to social security benefits. Back taxes Obtaining an ITIN does not change your immigration or employment status under U. Back taxes S. Back taxes law. Back taxes Obtaining a social security number. Back taxes   If you have never had an SSN, apply for one using Form SS-5, Application for a Social Security Card. Back taxes The application is also available in Spanish. Back taxes You can get this form at any Social Security office or by calling 1-800-772-1213. Back taxes    You can also download Form SS-5 from the Social Security Administration website at  www. Back taxes socialsecurity. Back taxes gov. Back taxes   If you have a social security number from the time you were an employee, you must use that number. Back taxes Do not apply for a new one. Back taxes Replacing a lost social security card. Back taxes   If you have a number but lost your card, file Form SS-5. Back taxes You will get a new card showing your original number, not a new number. Back taxes Name change. Back taxes   If your name has changed since you received your social security card, complete Form SS-5 to report a name change. Back taxes Obtaining an individual taxpayer identification number. Back taxes   The IRS will issue you an ITIN, for tax use only, if you are a nonresident or resident alien and you do not have, and are not eligible to get, an SSN. Back taxes To apply for an ITIN, file Form W-7, Application for IRS Individual Taxpayer Identification Number. Back taxes You can get this form by calling 1-800-829-3676. Back taxes For more information on ITINs, see Publication 1915, Understanding Your IRS Individual Taxpayer Identification Number. Back taxes Form W-7 and Publication 1915 are also available in Spanish. Back taxes    You can also download Form W-7 from the IRS website at IRS. Back taxes gov. Back taxes Paying estimated tax. Back taxes   Estimated tax is the method used to pay tax (including SE tax) on income not subject to withholding. Back taxes You generally have to make estimated tax payments if you expect to owe tax, including SE tax, of $1,000 or more when you file your return. Back taxes Use Form 1040-ES, Estimated Tax for Individuals, to figure and pay the tax. Back taxes   However, if at least two-thirds of your gross income for 2013 or 2014 was from farming and you file your 2014 Form 1040 and pay all the tax due by March 2, 2015, you do not have to pay any estimated tax. Back taxes For more information about estimated tax for farmers, see chapter 15. Back taxes Penalty for underpayment of estimated tax. Back taxes   You may have to pay a penalty if you do not pay enough estimated tax by its due date. Back taxes Who Must Pay Self-Employment Tax? You must pay SE tax and file Schedule SE (Form 1040) if your net earnings from self-employment were $400 or more. Back taxes The SE tax rules apply no matter how old you are and even if you are already receiving social security or Medicare benefits. Back taxes Aliens. Back taxes   Generally, resident aliens must pay self-employment tax under the same rules that apply to U. Back taxes S. Back taxes citizens. Back taxes Nonresident aliens are not subject to self-employment tax. Back taxes However, residents of the Virgin Islands, Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, or American Samoa are subject to self-employment tax, as they are considered U. Back taxes S. Back taxes residents for self-employment tax purposes. Back taxes For more information on aliens, see Publication 519, U. Back taxes S. Back taxes Tax Guide for Aliens. Back taxes Are you self-employed?   You are self-employed if you carry on a trade or business (such as running a farm) as a sole proprietor, an independent contractor, a member of a partnership, or are otherwise in business for yourself. Back taxes A trade or business is generally an activity carried on for a livelihood or in good faith to make a profit. Back taxes Share farmer. Back taxes   You are a self-employed farmer under an income-sharing arrangement if both the following apply. Back taxes You produce a crop or raise livestock on land belonging to another person. Back taxes Your share of the crop or livestock, or the proceeds from their sale, depends on the amount produced. Back taxes Your net farm profit or loss from the income-sharing arrangement is reported on Schedule F (Form 1040) and included in your self-employment earnings. Back taxes   If you produce a crop or livestock on land belonging to another person and are to receive a specified rate of pay, a fixed sum of money, or a fixed quantity of the crop or livestock, and not a share of the crop or livestock or their proceeds, you may be either self-employed or an employee of the landowner. Back taxes This will depend on whether the landowner has the right to direct or control your performance of services. Back taxes Example. Back taxes A share farmer produces a crop on land owned by another person on a 50-50 crop-share basis. Back taxes Under the terms of their agreement, the share farmer furnishes the labor and half the cost of seed and fertilizer. Back taxes The landowner furnishes the machinery and equipment used to produce and harvest the crop, and half the cost of seed and fertilizer. Back taxes The share farmer is provided a house in which to live. Back taxes The landowner and the share farmer decide on a cropping plan. Back taxes The share farmer is a self-employed farmer for purposes of the agreement to produce the crops, and the share farmer's part of the profit or loss from the crops is reported on Schedule F (Form 1040) and included in self-employment earnings. Back taxes The tax treatment of the landowner is discussed later under Landlord Participation in Farming. Back taxes Contract farming. Back taxes   Under typical contract farming arrangements, the grower receives a fixed payment per unit of crops or finished livestock delivered to the processor or packing company. Back taxes Since the grower typically furnishes labor and bears some production risk, the payments are reported on Schedule F and are therefore subject to self-employment tax. Back taxes 4-H Club or FFA project. Back taxes   If an individual participates in a 4-H Club or Future Farmers of America (FFA) project, any net income received from sales or prizes related to the project may be subject to income tax. Back taxes Report the net income as “Other income” on line 21 of Form 1040. Back taxes If necessary, attach a statement showing the gross income and expenses. Back taxes The net income may not be subject to SE tax if the project is primarily for educational purposes and not for profit, and is completed by the individual under the rules and economic restrictions of the sponsoring 4-H or FFA organization. Back taxes Such a project is generally not considered a trade or business. Back taxes Partners in a partnership. Back taxes   Generally, you are self-employed if you are a member of a partnership that carries on a trade or business. Back taxes Limited partner. Back taxes   If you are a limited partner, your partnership income is generally not subject to SE tax. Back taxes However, guaranteed payments you receive for services you perform for the partnership are subject to SE tax and should be reported to you in box 14 of your Schedule K-1 (Form 1065). Back taxes Business Owned and Operated by Spouses. Back taxes   If you and your spouse jointly own and operate a farm as an unincorporated business and share in the profits and losses, you are partners in a partnership whether or not you have a formal partnership agreement. Back taxes You must file Form 1065, instead of Schedule F, unless you make a joint election to be treated as a qualified joint venture. Back taxes Making this election will allow you to avoid the complexity of Form 1065 but still give each spouse credit for social security earnings on which retirement benefits are based. Back taxes Qualified joint venture. Back taxes   If you and your spouse each materially participate as the only members of a jointly owned and operated farm, and you file a joint tax return for the tax year, you can make a joint election to be treated as a qualified joint venture instead of a partnership for the tax year. Back taxes For an explanation of “material participation,” see the instructions for Schedule C, line G, and the instructions for Schedule F, line E. Back taxes   To make this election, you must divide all items of income, gain, loss, deduction, and credit attributable to the business between you and your spouse in accordance with your respective interests in the venture. Back taxes Each of you must file a separate Schedule F and a separate Schedule SE. Back taxes For more information, see Qualified Joint Venture in the Instructions for Schedule SE (Form 1040). Back taxes Spouse employee. Back taxes   If your spouse is your employee, not your partner, you must withhold and pay social security and Medicare taxes for him or her. Back taxes For more information about employment taxes, see chapter 13. Back taxes Community property. Back taxes   If you are a partner and your distributive share of any income or loss from a trade or business carried on by the partnership is community property, treat your share as your self-employment earnings. Back taxes Do not treat any of your share as self-employment earnings of your spouse. Back taxes Figuring Self-Employment Earnings Farmer. Back taxes   If you are self-employed as a farmer, use Schedule F (Form 1040) to figure your self-employment earnings. Back taxes Partnership income or loss. Back taxes   If you are a member of a partnership that carries on a trade or business, the partnership should report your self-employment earnings in box 14, code A, of your Schedule K-1 (Form 1065). Back taxes Box 14 of Schedule K-1 may also provide amounts for gross farming or fishing income (code B) and gross nonfarm income (code C). Back taxes Use these amounts if you use the farm or nonfarm optional method to figure net earnings from self-employment (see Methods for Figuring Net Earnings , later). Back taxes   If you are a general partner, you may need to reduce these reported earnings by amounts you claim as a section 179 deduction, unreimbursed partnership expenses, or depletion on oil and gas properties. Back taxes   If the amount reported is a loss, include only the deductible amount when you figure your total self-employment earnings. Back taxes   For more information, see the Partner's Instructions for Schedule K-1 (Form 1065). Back taxes   For general information on partnerships, see Publication 541. Back taxes More than one business. Back taxes   If you have self-employment earnings from more than one trade, business, or profession, you generally must combine the net profit or loss from each to determine your total self-employment earnings. Back taxes A loss from one business reduces your profit from another business. Back taxes However, do not combine earnings from farm and nonfarm businesses if you are using one of the optional methods (discussed later) to figure net earnings. Back taxes Community property. Back taxes   If any of the income from a farm or business, other than a partnership, is community property under state law, it is included in the self-employment earnings of the spouse carrying on the trade or business. Back taxes Lost income payments. Back taxes   Lost income payments received from insurance or other sources for reducing or stopping farming activities are included in self-employment earnings. Back taxes These include USDA payments to compensate for lost income resulting from reductions in tobacco quotas and allotments. Back taxes Even if you are not farming when you receive the payment, it is included in self-employment earnings if it relates to your farm business (even though it is temporarily inactive). Back taxes A connection exists if it is clear the payment would not have been made but for your conduct of your farm business. Back taxes Gain or loss. Back taxes   A gain or loss from the disposition of property that is neither stock in trade nor held primarily for sale to customers is not included in self-employment earnings. Back taxes It does not matter whether the disposition is a sale, exchange, or involuntary conversion. Back taxes For example, gains or losses from the disposition of the following types of property are not included in self-employment earnings. Back taxes Investment property. Back taxes Depreciable property or other fixed assets used in your trade or business. Back taxes Livestock held for draft, breeding, sport, or dairy purposes, and not held primarily for sale, regardless of how long the livestock was held, or whether it was raised or purchased. Back taxes Unharvested standing crops sold with land held more than 1 year. Back taxes Timber, coal, or iron ore held for more than 1 year if an economic interest was retained, such as a right to receive coal royalties. Back taxes   A gain or loss from the cutting of timber is not included in self-employment earnings if the cutting is treated as a sale or exchange. Back taxes For more information on electing to treat the cutting of timber as a sale or exchange, see Timber in chapter 8. Back taxes Wages and salaries. Back taxes   Wages and salaries received for services performed as an employee and covered by social security or railroad retirement are not included in self-employment earnings. Back taxes   Wages paid in kind to you for agricultural labor, such as commodity wages, are not included in self-employment earnings. Back taxes Retired partner. Back taxes   Retirement income received by a partner from his or her partnership under a written plan is not included in self-employment earnings if all the following apply. Back taxes The retired partner performs no services for the partnership during the year. Back taxes The retired partner is owed only the retirement payments. Back taxes The retired partner's share (if any) of the partnership capital was fully paid to the retired partner. Back taxes The payments to the retired partner are lifelong periodic payments. Back taxes Conservation Reserve Program (CRP) payments. Back taxes   Under the Conservation Reserve Program (CRP), if you own or operate highly erodible or other specified cropland, you may enter into a longterm contract with the USDA, agreeing to convert to a less intensive use of that cropland. Back taxes You must include the annual rental payments and any onetime incentive payment you receive under the program on Schedule F, lines 4a and 4b. Back taxes Cost share payments you receive may qualify for the costsharing exclusion. Back taxes See Cost-Sharing Exclusion (Improvements), above. Back taxes CRP payments are reported to you on Form 1099G. Back taxes Individuals who are receiving Social Security retirement or disability benefits may exclude CRP payments when calculating self-employment tax. Back taxes See the instructions for Schedule SE (Form 1040). Back taxes Self-employed health insurance deduction. Back taxes   You cannot deduct the self-employed health insurance deduction you report on Form 1040, line 29, from self-employment earnings on Schedule SE (Form 1040). Back taxes Landlord Participation in Farming As a general rule, income and deductions from rentals and from personal property leased with real estate are not included in determining self-employment earnings. Back taxes However, income and deductions from farm rentals, including government commodity program payments received by a landowner who rents land, are included if the rental arrangement provides that the landowner will, and does, materially participate in the production or management of production of the farm products on the land. Back taxes Crop shares. Back taxes   Rent paid in the form of crop shares is included in self-employment earnings for the year you sell, exchange, give away, or use the crop shares if you meet one of the four material participation tests (discussed next) at the time the crop shares are produced. Back taxes Feeding such crop shares to livestock is considered using them. Back taxes Your gross income for figuring your self-employment earnings includes the fair market value of the crop shares when they are used as feed. Back taxes Material participation for landlords. Back taxes   You materially participate if you have an arrangement with your tenant for your participation and you meet one or more of the following tests. Back taxes You do at least three of the following. Back taxes Pay, using cash or credit, at least half the direct costs of producing the crop or livestock. Back taxes Furnish at least half the tools, equipment, and livestock used in the production activities. Back taxes Advise or consult with your tenant. Back taxes Inspect the production activities periodically. Back taxes You regularly and frequently make, or take an important part in making, management decisions substantially contributing to or affecting the success of the enterprise. Back taxes You work 100 hours or more spread over a period of 5 weeks or more in activities connected with agricultural production. Back taxes You do things that, considered in their totality, show you are materially and significantly involved in the production of the farm commodities. Back taxes These tests may be used as general guides for determining whether you are a material participant. Back taxes Example. Back taxes Drew Houston agrees to produce a crop on J. Back taxes Clarke's cotton farm, with each receiving half the proceeds. Back taxes Clarke advises Houston when to plant, spray, and pick the cotton. Back taxes During the growing season, Clarke inspects the crop every few days to determine whether Houston is properly taking care of the crop. Back taxes Houston furnishes all labor needed to grow and harvest the crop. Back taxes The management decisions made by Clarke in connection with the care of the cotton crop and his regular inspection of the crop establish that he participates to a material degree in the cotton production operations. Back taxes The income Clarke receives from his cotton farm is included in his self-employment earnings. Back taxes Methods for Figuring Net Earnings There are three ways to figure your net earnings from self-employment. Back taxes The regular method. Back taxes The farm optional method. Back taxes The nonfarm optional method. Back taxes You must use the regular method unless you are eligible to use one or both of the optional methods. Back taxes See Figure 12-1 , shown later. Back taxes Figure 12-1. Back taxes Can I Use the Optional Methods? Please click here for the text description of the image. Back taxes Figure 12–1. Back taxes Can I Use the Optional Methods? Why use an optional method?   You may want to use the optional methods (discussed later) when you have a loss or a small net profit and any one of the following applies. Back taxes You want to receive credit for social security benefit coverage. Back taxes You incurred child or dependent care expenses for which you could claim a credit. Back taxes (An optional method may increase your earned income, which could increase your credit. Back taxes ) You are entitled to the earned income credit. Back taxes (An optional method may increase your earned income, which could increase your credit. Back taxes ) You are entitled to the additional child tax credit. Back taxes (An optional method may increase your earned income, which could increase your credit. Back taxes ) Effects of using an optional method. Back taxes   Using an optional method could increase your SE tax. Back taxes Paying more SE tax may result in you getting higher social security disability or retirement benefits. Back taxes   If you use either or both optional methods, you must figure and pay the SE tax due under these methods even if you would have had a smaller SE tax or no SE tax using the regular method. Back taxes   The optional methods may be used only to figure your SE tax. Back taxes To figure your income tax, include your actual self-employment earnings in gross income, regardless of which method you use to determine SE tax. Back taxes Regular Method Multiply your total self-employment earnings by 92. Back taxes 35% (. Back taxes 9235) to get your net earnings under the regular method. Back taxes See Short Schedule SE, line 4, or Long Schedule SE, line 4a. Back taxes Net earnings figured using the regular method are also called “actual net earnings. Back taxes ” Farm Optional Method Use the farm optional method only for self-employment earnings from a farming business. Back taxes You can use this method if you meet either of the following tests. Back taxes Your gross farm income is $6,960 or less. Back taxes Your net farm profits are less than $5,024. Back taxes Gross farm income. Back taxes   Your gross farm income is the total of the amounts from: Schedule F (Form 1040), line 9, and Schedule K-1 (Form 1065), box 14, code B (from farm partnerships). Back taxes Net farm profits. Back taxes   Net farm profits generally are the total of the amounts from: Schedule F (Form 1040), line 34, and Schedule K-1 (Form 1065), box 14, code A (from farm partnerships). Back taxes However, you may need to adjust the amount reported on Schedule K-1 if you are a general partner or if it is a loss. Back taxes For more information, see Partnership income or loss , earlier. Back taxes Figuring farm net earnings. Back taxes   If you meet either of the two tests explained above, use Table 12-1. Back taxes Figuring Farm Net Earnings , to figure your net earnings from self-employment under the farm optional method. Back taxes Table 12-1. Back taxes Figuring Farm Net Earnings IF your gross farm income  is. Back taxes . Back taxes . Back taxes THEN your net earnings are equal to. Back taxes . Back taxes . Back taxes $6,960 or less Two-thirds of your gross farm income. Back taxes More than $6,960 $4,640 Optional method can reduce or eliminate SE tax. Back taxes   If your gross farm income is $6,960 or less and your farm net earnings figured under the farm optional method are less than your actual net earnings, you can use the farm optional method to reduce or eliminate your SE tax. Back taxes Your actual net earnings are your net earnings figured using the regular method, explained earlier. Back taxes Example. Back taxes Your gross farm income is $540 and your net farm profit is $460. Back taxes Consequently, your net earnings figured under the farm optional method are $360 (2/3 of $540) and your actual net earnings are $425 (92. Back taxes 35% of $460). Back taxes You owe no SE tax if you use the optional method because your net earnings under the farm optional method are less than $400. Back taxes Nonfarm Optional Method This is an optional method available for determining net earnings from nonfarm self-employment, much like the farm optional method. Back taxes If you are also engaged in a nonfarm business, you may be able to use this method to figure your nonfarm net earnings. Back taxes You can use this method even if you do not use the farm optional method for determining your farm net earnings and even if you have a net loss from your nonfarm business. Back taxes For more information about the nonfarm optional method, see Publication 334. Back taxes You cannot combine farm and nonfarm self-employment earnings to figure your net earnings under either of the optional methods. Back taxes Using Both Optional Methods If you use both optional methods, you must add the net earnings figured under each method to arrive at your total net earnings from self-employment. Back taxes You can report less than your total actual farm and nonfarm net earnings but not less than actual nonfarm net earnings. Back taxes If you use both optional methods, you can report no more than $4,640 as your combined net earnings from self-employment. Back taxes Reporting Self-Employment Tax Use Schedule SE (Form 1040) to figure and report your SE tax. Back taxes Then, enter the SE tax on line 56 of Form 1040 and attach Schedule SE to Form 1040. Back taxes Most taxpayers can use Section A–Short Schedule SE to figure their SE tax. Back taxes However, certain taxpayers must use Section B–Long Schedule SE. Back taxes Use the chart on page 1 of Schedule SE to find out which one to use. Back taxes If you have to pay SE tax, you must file Form 1040 (with Schedule SE attached) even if you do not otherwise have to file a federal income tax return. Back taxes Deduction for employer-equivalent portion of self-employment tax. Back taxes   You can deduct the employer-equivalent portion of your SE tax in figuring your adjusted gross income. Back taxes This deduction only affects your income tax. Back taxes It does not affect either your net earnings from self-employment or your SE tax. Back taxes   To deduct the tax, enter on Form 1040, line 27, the amount shown on Section A, Line 6, or Section B, line 13, Deduction for employer-equivalent portion of self-employment tax, of the Schedule SE. Back taxes Joint return. Back taxes   Even if you file a joint return, you cannot file a joint Schedule SE. Back taxes This is true whether one spouse or both spouses have self-employment earnings. Back taxes Your spouse is not considered self-employed just because you are. Back taxes If both of you have self-employment earnings, each of you must complete a separate Schedule SE. Back taxes However, if one spouse uses the Short Schedule SE and the other spouse has to use the Long Schedule SE, both can use the same form. Back taxes Attach both schedules to the joint return. Back taxes If you and your spouse operate a business as a partnership, see Business Owned and Operated by Spouses and Qualified joint venture , earlier, under Who Must Pay Self-Employment Tax . Back taxes Prev  Up  Next   Home   More Online Publications
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Electronic Payment Options for Businesses and Individuals

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Same-Day Wire Federal Tax Payments

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The Back Taxes

Back taxes Index A Assistance (see Tax help) C Cancellation of indebtedness, Exclusion of Certain Cancellations of Indebtedness by Reason of the Severe Storms, Tornadoes, or Flooding Casualty and theft losses, Casualty and Theft Losses Charitable contributions, Temporary Suspension of Limits on Charitable Contributions Child tax credit, Earned Income Credit and Child Tax Credit Clean-up costs, Demolition and Clean-up Costs Copy of tax return, request for, Request for copy of tax return. Back taxes Credits: Child tax, Earned Income Credit and Child Tax Credit Earned income, Earned Income Credit and Child Tax Credit Education, Education Credits Employee retention, Employee Retention Credit Employer housing, Employer Housing Credit and Exclusion Rehabilitation tax, Increase in Rehabilitation Tax Credit D Demolition costs, Demolition and Clean-up Costs Distributions: Home purchase or construction, Repayment of Qualified Distributions for the Purchase or Construction of a Main Home Qualified disaster recovery assistance, Qualified disaster recovery assistance distribution. Back taxes Repayment of, Repayment of Qualified Disaster Recovery Assistance Distributions Taxation of, Taxation of Qualified Disaster Recovery Assistance Distributions E Earned income credit, Earned Income Credit and Child Tax Credit Education credits, Education Credits Eligible retirement plan, Eligible retirement plan. Back taxes Employee retention credit, Employee Retention Credit Employer housing credit, Employer Housing Credit and Exclusion Exemption, additional for housing, Additional Exemption for Housing Individuals Displaced by the Severe Storms, Tornadoes, or Flooding F Federal mortgage subsidy, recapture of, Recapture of Federal Mortgage Subsidy Free tax services, How To Get Tax Help H Help (see Tax help) Hope credit (see Education credits) I Involuntary conversion (see Replacement period for nonrecognition of gain) IRAs and other retirement plans, IRAs and Other Retirement Plans L Lifetime learning credit (see Education credits) M Mileage reimbursements, charitable volunteers, Mileage Reimbursements to Charitable Volunteers More information (see Tax help) N Net operating losses, Net Operating Losses P Publications (see Tax help) Q Qualified disaster recovery assistance distribution, Qualified disaster recovery assistance distribution. Back taxes Qualified disaster recovery assistance loss, Qualified disaster recovery assistance loss. Back taxes R Rehabilitation tax credit, Increase in Rehabilitation Tax Credit Relocation, temporary, Tax Relief for Temporary Relocation Replacement period for nonrecognition of gain, Replacement Period for Nonrecognition of Gain Retirement plan, eligible, Eligible retirement plan. Back taxes Retirement plans, IRAs and Other Retirement Plans S Standard mileage rate, charitable use, Standard Mileage Rate for Charitable Use of Vehicles T Tax help, How To Get Tax Help Tax return: Request for copy, Request for copy of tax return. Back taxes Request for transcript, Request for transcript of tax return. Back taxes Taxpayer Advocate, Contacting your Taxpayer Advocate. Back taxes Temporary relocation, Tax Relief for Temporary Relocation Theft losses, Casualty and Theft Losses Transcript of tax return, request for, Request for transcript of tax return. Back taxes TTY/TDD information, How To Get Tax Help Prev  Up     Home   More Online Publications