INSTRUCTIONS: SELF-EMPLOYMENT TAX SCHEDULE SE

The flowchart on this form will inform you of whether you can elect to fill out the Short Schedule SE or the Long Schedule SE.

“Self-Employment Tax Schedule SE Step 1”

If you’re self-employed, you need to fill out the form if you make $400 or more. If you’re a church employee, you need to fill out the form if you made $108.28 or more.

In most cases, you’ll have to fill out this form if you’re a minister or member of a religious order. However, if file Form 4361 and received IRS approval, you’re exempt from the SE tax. Refer to pages SE-1 through SE-3 in the following guide for more information on self-employed professions: http://www.irs.gov/pub/irs-pdf/i1040sse.pdf.

“Self-Employment Tax Schedule SE Step 2”

On line 1b of the short or long version, enter the total amount of your taxable CRP payments if you’re receiving social security retirement or disability benefits at the time you received your CRP payments. The payments are included on Schedule F, line 4b or on Form 1065, box 20, code Y.

“Self-Employment Tax Schedule SE Step 3”

If line 4 on the short version is less than $400 you have an amount on line 1b, combine lines 1a and 2. If the total on lines 1a and 2 is $434 or more, file this form with your tax return and enter -0- on Form 1040, line 56 or Form 1040NR, line 54.

If lines 1a and 2 is less than $434, do not file Schedule SE unless you have an optional method for figuring out your SE tax.

“Self-Employment Tax Schedule SE Step 4”

If both lines 4a and 4c on the long version are less than $400 and there is an amount on line 1b, combine lines 1a and 2. If the total amount on lines 1a and 2 is $434 or more, file this form with your tax return. Enter -0- on Form 1040, line 56 and complete lines 5a and 5b if you have church employee income.

If the total of lines 1a and 2 is less than $434, do not file this form unless you choose another method for calculating your SE tax.

“Self-Employment Tax Schedule SE Step 5”

For specific instructions on net earning form self-employment, regard pages SE-3 through SE-5 in the instructional guide.