Part V. Self-Employment Tax Computation Self-Employment Tax: Social security tax = The lesser of Net Sch-C income or $132,900 (for 2018) *12.4% (round to nearest dollar) = Medicare tax = Net Schedule-C business income*92.35%*2.9% (round to nearest dollar) = Part VI. Income Tax Computation A. Net Capital Gains B. Other Gains Realized ordinary income from disposition of property under Section 1245 C. Taxpayer's AGI (after one-half of Self-employment tax deduction) AG D. Taxable Income before Qualified Business Income Deduction: E. Qualified Business Income Deduction: F. Tax Computation 1) Tax based on tax rate schedule Y-1: 2) Total tax on Capital Gains = 15% X 25% X 28% X 3 ) Total Self-Employment Tax from Part V Add F(1), F(2) and F(3), this is their total tax