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How to verify Self-employment Tax as it is computed field. How to see on the schedule?

Forum|Forum|2 years ago
April 10, 2023
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I have a side consulting business where I get 1099 NEC. When I enter them, the tax owed is of course increasing (per Schedule C). Later in Turbo Tax there is a calculated tax of Business tax. It says to reference Schedule J which has some Dividends on it but it is not related to Business but rather to Personal Dividends Income. Why is this? What is the Business Self-employment Tax?

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Best answer by JamesG1

Self-employment tax (SE tax), is the Social Security and Medicare tax paid by self-employed individuals. It is similar to the Federal Insurance Contributions Act (FICA), which is the Social Security and Medicare taxes withheld from an employee’s paycheck. See here.

The SE tax rate is 15.3% with 12.4%for Social Security and 2.9%for Medicare. The IRS reports your SE tax on Schedule SE and also calculate the deduction that goes along with it.

Self-employment tax is and income tax are computed on the IRS form 1040 Federal tax return.

Are you referring to the Schedule J in IRS form 1040? Or Schedule J in some other IRS tax return?

@myquest

J

JamesG1Answer

Self-employment tax (SE tax), is the Social Security and Medicare tax paid by self-employed individuals. It is similar to the Federal Insurance Contributions Act (FICA), which is the Social Security and Medicare taxes withheld from an employee’s paycheck. See here.

The SE tax rate is 15.3% with 12.4%for Social Security and 2.9%for Medicare. The IRS reports your SE tax on Schedule SE and also calculate the deduction that goes along with it.

Self-employment tax is and income tax are computed on the IRS form 1040 Federal tax return.

Are you referring to the Schedule J in IRS form 1040? Or Schedule J in some other IRS tax return?

@myquest

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