Taxation Project 2

SCHEDULE SE (Form 1040)

Department of the Treasury Internal Revenue Service

Self-Employment Tax Attach to Form 1040, 1040-SR, 1040-SS, or 1040-NR.

Go to www.irs.gov/ScheduleSE for instructions and the latest information.

OMB No. 1545-0074

2023 Attachment Sequence No. 17

Name of person with self-employment income (as shown on Form 1040, 1040-SR, 1040-SS, or 1040-NR) Social security number of person with self-employment income

Part I Self-Employment Tax Note: If your only income subject to self-employment tax is church employee income, see instructions for how to report your income and 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 4361, but you had

$400 or 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.

1 a Net farm profit or (loss) from Schedule F, line 34, and farm partnerships, Schedule K-1 (Form 1065), box 14, code A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1a

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 AQ 1b ( )

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 2 3 Combine lines 1a, 1b, and 2 . . . . . . . . . . . . . . . . . . . . . . . . . 3 4 a If line 3 is more than zero, multiply line 3 by 92.35% (0.9235). Otherwise, enter amount from line 3 . 4a

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 . . . . . 4b 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 . . . . . . . . 4c 5

a Enter your church employee income from Form W-2. See instructions for

definition of church employee income . . . . . . . . . . . . . 5a b Multiply line 5a by 92.35% (0.9235). If less than $100, enter -0- . . . . . . . . . . . . . 5b

6 Add lines 4c and 5b . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 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 2023 . . . . . . . . . . . 7 160,200 8

a

Total social security wages and tips (total of boxes 3 and 7 on Form(s) W-2) and railroad retirement (tier 1) compensation. If $160,200 or more, skip lines 8b through 10, and go to line 11 . . . . . . . . . . . . . . . 8a

b Unreported tips subject to social security tax from Form 4137, line 10 . . . 8b c Wages subject to social security tax from Form 8919, line 10 . . . . . . 8c d Add lines 8a, 8b, and 8c . . . . . . . . . . . . . . . . . . . . . . . . . . 8d

9 Subtract line 8d from line 7. If zero or less, enter -0- here and on line 10 and go to line 11 . . . . 9 10 Multiply the smaller of line 6 or line 9 by 12.4% (0.124) . . . . . . . . . . . . . . . . 10 11 Multiply line 6 by 2.9% (0.029) . . . . . . . . . . . . . . . . . . . . . . . . 11 12 Self-employment tax. Add lines 10 and 11. Enter here and on Schedule 2 (Form 1040), line 4, or

Form 1040-SS, Part I, line 3 . . . . . . . . . . . . . . . . . . . . . . . . 12 13 Deduction for one-half of self-employment tax.

Multiply line 12 by 50% (0.50). Enter here and on Schedule 1 (Form 1040), line 15 . . . . . . . . . . . . . . . . . . . . . . . . 13

For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 11358Z Schedule SE (Form 1040) 2023

Schedule SE (Form 1040) 2023 Page 2 Part II Optional Methods To Figure Net Earnings (see instructions)

Farm Optional Method. You may use this method only if (a) your gross farm income1 wasn’t more than

$9,840, or (b) your net farm profits2 were less than $7,103.

14 Maximum income for optional methods . . . . . . . . . . . . . . . . . . . . . 14 6,560 15 Enter the smaller of: two-thirds (2/3) of gross farm income1 (not less than zero) or $6,560. Also, include

this amount on line 4b above . . . . . . . . . . . . . . . . . . . . . . . . 15 Nonfarm Optional Method. You may use this method only if (a) your net nonfarm profits3

were less than $7,103 and also less than 72.189% of your gross nonfarm income,4

and (b) you had net earnings from self-employment of at least $400 in 2 of the prior 3 years. Caution: You may use this method no more than five times. 16 Subtract line 15 from line 14 . . . . . . . . . . . . . . . . . . . . . . . . . 16 17 Enter the smaller of: two-thirds (2/3) of gross nonfarm income4

(not less than zero) or the amount on line 16. Also, include this amount on line 4b above . . . . . . . . . . . . . . . . . 17

1 From Sch. F, line 9; and Sch. K-1 (Form 1065), box 14, code B. 2 From Sch. F, line 34; and Sch. K-1 (Form 1065), box 14, code A—minus the amount

you would have entered on line 1b had you not used the optional method.

3 From Sch. C, line 31; and Sch. K-1 (Form 1065), box 14, code A. 4 From Sch. C, line 7; and Sch. K-1 (Form 1065), box 14, code C.

Schedule SE (Form 1040) 2023

Version A, Cycle 5

INTERNAL USE ONLY

DRAFT AS OF

July 14, 2023

2023 Schedule SE (Form 1040)

SE:W:CAR:MP

Self-Employment Tax

SCHEDULE SE  (Form 1040)

Department of the Treasury Internal Revenue Service

Self-Employment Tax

 Attach to Form 1040, 1040-SR, 1040-SS, or 1040-NR.         

Go to www.irs.gov/ScheduleSE for instructions and the latest information.

OMB No. 1545-0074

2023

2023. Cat. No. 11358Z.

Attachment 

Sequence No. 17

Attachment Sequence No. 17. For Paperwork Reduction Act Notice, see your tax return instructions.

Part I

Self-Employment Tax

Note: If your only income subject to self-employment tax is church employee income, see instructions for how to report your income and 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 4361, but you had $400 or 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.

1

a

Net farm profit or (loss) from Schedule F, line 34, and farm partnerships, Schedule K-1 (Form 1065), box 14, code A           

1a

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 AQ

1b

( )

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

2

3

Combine lines 1a, 1b, and 2          

3

4

a

If line 3 is more than zero, multiply line 3 by 92.35% (0.9235). Otherwise, enter amount from line 3          

4a

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         

4b

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          

4c

5

a

Enter your church employee income from Form W-2. See instructions for definition of church employee income          

5a

b

Multiply line 5a by 92.35% (0.9235). If less than $100, enter -0-         

5b

6

Add lines 4c and 5b         

6

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 2023         

7

8

a

Total social security wages and tips (total of boxes 3 and 7 on Form(s) W-2) and railroad retirement (tier 1) compensation. If $160,200 or more, skip lines 8b through 10, and go to line 11                  

8a

b

Unreported tips subject to social security tax from Form 4137, line 10          

8b

c

Wages subject to social security tax from Form 8919, line 10         

8c

d

Add lines 8a, 8b, and 8c         

8d

9

Subtract line 8d from line 7. If zero or less, enter -0- here and on line 10 and go to line 11         

9

10

Multiply the smaller of line 6 or line 9 by 12.4% (0.124)         

10

11

Multiply line 6 by 2.9% (0.029)         

11

12

Self-employment tax. Add lines 10 and 11. Enter here and on Schedule 2 (Form 1040), line 4, or Form 1040-SS, Part I, line 3         

12

13

Deduction for one-half of self-employment tax. 

Multiply line 12 by 50% (0.50). Enter here and on Schedule 1 (Form 1040), line 15          

13

For Paperwork Reduction Act Notice, see your tax return instructions.

Cat. No. 11358Z

Schedule SE (Form 1040) 2023

Schedule SE (Form 1040) 2023

Page 2

Part II

Optional Methods To Figure Net Earnings (see instructions) 

Farm Optional Method. You may use this method only if (a) your gross farm income1 wasn’t more than $9,840, or (b) your net farm profits2  were less than $7,103. 

14

Maximum income for optional methods         

14

15 

Enter the smaller of: two-thirds (2/3) of gross farm income1 (not less than zero) or $6,560. Also, include this amount on line 4b above         

15

Nonfarm Optional Method. You may use this method only if (a) your net nonfarm profits3 were less than $7,103 and also less than 72.189% of your gross nonfarm income,4  and (b) you had net earnings from self-employment of at least $400 in 2 of the prior 3 years. Caution: You may use this method no more than five times.

16

Subtract line 15 from line 14         

16

17

Enter the smaller of: two-thirds (2/3) of gross nonfarm income4 (not less than zero) or the amount on line 16. Also, include this amount on line 4b above         

17

1 From Sch. F, line 9; and Sch. K-1 (Form 1065), box 14, code B. 

2 From Sch. F, line 34; and Sch. K-1 (Form 1065), box 14, code A—minus the amount you would have entered on line 1b had you not used the optional method. 

3 From Sch. C, line 31; and Sch. K-1 (Form 1065), box 14, code A.

4 From Sch. C, line 7; and Sch. K-1 (Form 1065), box 14, code C.

Schedule SE (Form 1040) 2023