Self-employed taxpayers are allowed to deduct one-half of their self-employment (SE) tax directly on their: Form 1040. Schedule 1 (Form 1040). Schedule C (Form 1040). Schedule SE (Form 1040). Mark for follow up Question 9 of 35. Which of the following is an adjustment to income available to self-employed taxpayers? Deduction for one-half of self-employment tax. Deduction for payroll taxes. Qualified Business Income Deduction. Self-employed life insurance deduction