Joanne Plummer is self-employed in 2018. Her Schedule C net income is $30,366 for the year, and Joanne also had a part-time job and earned $4,400 that was subject to FICA tax. Joanne received taxable dividends of $1,110 during the year, and she had a capital gain on the sale of stock of $9,100.

Calculate Joanne's self-employment tax using page 1 of Schedule SE of Form 1040.

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 in the instructions. Did you receive wages or tips in 2018? No Yes Yes Yes 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? Was the total of your wages and tips subject to social security or railroad retirement (tier 1) tax plus your net earnings from self-employment more than $128,4002 No No Yes Yes Are you using one of the optional methods to figure your net earnings (see instructions)? Did you receive tips subject to social security or Medicare tax that you didn't report to your employer? No No Yes Yes No Did you receive church employee income (see instructions) reported on Form W-2 of $108.28 or more? Did you report any wages on Form 8919, Uncollected Social Security and Medicare Tax on Wages? No You may use Short Schedule SE below You must use Long Schedule SE on page 2 la N 3 3 4 Section A-Short Schedule SE. Caution: Read above to see if you can use Short Schedule SE. la Net farm profit or loss) from Schedule F, line 34, and farm partnerships, Schedule K-1 (Form 1065), box 14, code A...... b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve Program payments included on Schedule F, line 4b, or listed on Schedule K-1 (Form 1065), box 20, code AH...... 1b 2 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 1065-8), box 9, code 11. Ministers and members of religious orders, see instructions for types of income to report on this line. See instructions for other income to report ...... Combine lines 1a, 1b, and 2. Multiply line 3 by 92.35% (0.9235). If less than $400, you don't owe self-employment tax; don't file this schedule unless you have an amount on line 1b...... Note: If line 4 is less than $400 due to Conservation Reserve Program payments on line 1b, see instructions. 5 Self-employment tax. If the amount on line 4 is: $128,400 or less, multiply line 4 by 15.3% (0.153). Enter the result here and on Schedule 4 (Form 1040), line 57, or Form 1040NR, line 55 More than $128,400, multiply line 4 by 2.9% (0.029). Then, add $15,921.50 to the result. Enter the total here and on Schedule 4 (Form 1040), line 57, or Form 1040NR, line 55....... 6 Deduction for one-half of self-employment tax. Multiply line 5 by 50% (0.50). Enter the result here and on Schedule 1 (Form 1040), line 27, or Form 1040NR, line 27. For Paperwork Reduction Act Notice, see your tax return instructions. Schedule SE (Form 1040) 2018 4 5 6 Cat. No. 11358Z 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 in the instructions. Did you receive wages or tips in 2018? No Yes Yes Yes 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? Was the total of your wages and tips subject to social security or railroad retirement (tier 1) tax plus your net earnings from self-employment more than $128,4002 No No Yes Yes Are you using one of the optional methods to figure your net earnings (see instructions)? Did you receive tips subject to social security or Medicare tax that you didn't report to your employer? No No Yes Yes No Did you receive church employee income (see instructions) reported on Form W-2 of $108.28 or more? Did you report any wages on Form 8919, Uncollected Social Security and Medicare Tax on Wages? No You may use Short Schedule SE below You must use Long Schedule SE on page 2 la N 3 3 4 Section A-Short Schedule SE. Caution: Read above to see if you can use Short Schedule SE. la Net farm profit or loss) from Schedule F, line 34, and farm partnerships, Schedule K-1 (Form 1065), box 14, code A...... b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve Program payments included on Schedule F, line 4b, or listed on Schedule K-1 (Form 1065), box 20, code AH...... 1b 2 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 1065-8), box 9, code 11. Ministers and members of religious orders, see instructions for types of income to report on this line. See instructions for other income to report ...... Combine lines 1a, 1b, and 2. Multiply line 3 by 92.35% (0.9235). If less than $400, you don't owe self-employment tax; don't file this schedule unless you have an amount on line 1b...... Note: If line 4 is less than $400 due to Conservation Reserve Program payments on line 1b, see instructions. 5 Self-employment tax. If the amount on line 4 is: $128,400 or less, multiply line 4 by 15.3% (0.153). Enter the result here and on Schedule 4 (Form 1040), line 57, or Form 1040NR, line 55 More than $128,400, multiply line 4 by 2.9% (0.029). Then, add $15,921.50 to the result. Enter the total here and on Schedule 4 (Form 1040), line 57, or Form 1040NR, line 55....... 6 Deduction for one-half of self-employment tax. Multiply line 5 by 50% (0.50). Enter the result here and on Schedule 1 (Form 1040), line 27, or Form 1040NR, line 27. For Paperwork Reduction Act Notice, see your tax return instructions. Schedule SE (Form 1040) 2018 4 5 6 Cat. No. 11358Z