Self-Employment Tax (LO 6.6)
James Felon is a self-employed surfboard-maker in 2021. His Schedule C net income is $163,200 for the year. He also has a part-time job and earns $9,792 in wages subject to FICA taxes.
Calculate James' self-employment tax for 2021 using page 1 of Schedule SE.
Note: If required, round amounts to the nearest dollar. Enter all amounts as positive numbers.
Note. If your only income subject to self-employment tax is church employee income, see instructions for h the definition of church employee income. A If you are a minister, member of a religious order, or Christian Science practitioner and you filed Form 43 more of other net earnings from self-employment, check here and continue with Part I . . . . . . . . . Skip lines 1a and 1b if you use the farm optional method in Part II. See instructions. 1a Net farm profit or (loss) from Schedule Fs line 34, and farm partnerships, Schedule K-1 (Form 1065), box 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 Skip line 2 if you use the nonfarm optional method in Part II. See instructions. 2 Net profit or (loss) from Schedule C, line 31; and Schedule K-1 (Form 1065), box 14, code A (other than farming). See instructions for other income to report or if you are a minister or member of a religious order Note: If line 4a is less than $400 due to Conservation Reserve Program payments on line 1b, see instructions. b If you elect one or both of the optional methods, enter the total of lines 15 and 17 here . c Combine lines 4a and 4b. If less than $400, stop; you don't owe self-employment tax. Exception: If less than $400 and you had church employee income, enter 0 - and continue 5a Enter your church employee income from Form W-2. See instructions for definition of church employee income. 7 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 2021 8a Total social security wages and tips (total of boxes 3 and 7 on Form(s) W- Part II Optional Methods To Figure Net Earnings (see instructions) Note. If your only income subject to self-employment tax is church employee income, see instructions for h the definition of church employee income. A If you are a minister, member of a religious order, or Christian Science practitioner and you filed Form 43 more of other net earnings from self-employment, check here and continue with Part I . . . . . . . . . Skip lines 1a and 1b if you use the farm optional method in Part II. See instructions. 1a Net farm profit or (loss) from Schedule Fs line 34, and farm partnerships, Schedule K-1 (Form 1065), box 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 Skip line 2 if you use the nonfarm optional method in Part II. See instructions. 2 Net profit or (loss) from Schedule C, line 31; and Schedule K-1 (Form 1065), box 14, code A (other than farming). See instructions for other income to report or if you are a minister or member of a religious order Note: If line 4a is less than $400 due to Conservation Reserve Program payments on line 1b, see instructions. b If you elect one or both of the optional methods, enter the total of lines 15 and 17 here . c Combine lines 4a and 4b. If less than $400, stop; you don't owe self-employment tax. Exception: If less than $400 and you had church employee income, enter 0 - and continue 5a Enter your church employee income from Form W-2. See instructions for definition of church employee income. 7 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 2021 8a Total social security wages and tips (total of boxes 3 and 7 on Form(s) W- Part II Optional Methods To Figure Net Earnings (see instructions)
