Schedule SE Tax Form: How to Fill Out the Self-Employment Tax Form

At FreelanceAtlas, we help freelancers file the tax forms that come with working for themselves. This guide walks through every line of the current Schedule SE with a worked example, then covers freelancers who also hold a W-2 job, the optional methods, and where each result lands on Form 1040. It picks up where Schedule C Instructions for Freelancers: A Line-by-Line Guide for 2026 ends, and Self-Employment Tax Explained: Where That 15.3% Actually Goes covers the reasoning behind the rates.

This article is general information, not tax advice. The examples use simplified assumptions, 2026 figures and the IRS draft of the 2026 Schedule SE, which can change before the final form is released. Confirm your own figures with a CPA or enrolled agent before you file.

What the Schedule SE Tax Form Does and Who Must File It

Schedule SE figures the Social Security and Medicare tax you owe on business profit, since no employer withholds it for you. The 2025 Instructions for Schedule SE say the Social Security Administration also uses the form “to figure your benefits under the social security program.” You must file it if either of these is true:

• Net earnings of $400 or more. The test is line 4c, which is your profit after the 92.35 percent step, not your profit itself. In whole dollars, a Schedule C profit of $434 is the smallest that reaches $400: $434 x 0.9235 = $400.80, while $433 x 0.9235 = $399.88.
• Church employee income of $108.28 or more. This is a narrow rule, covered below.

Age does not matter. The instructions say the tax “applies no matter how old you are and even if you are already getting social security or Medicare benefits.” If you run two businesses, you combine their profits and losses on one Schedule SE, so a loss in one reduces the other. If you file jointly and both spouses have self-employment income, each spouse files a separate Schedule SE.

Schedule SE is a US form. US citizens and resident aliens who freelance from abroad usually still owe the tax, and the instructions say foreign self-employment earnings “can’t be reduced by your foreign earned income exclusion.” The exception is a country that has a social security agreement with the United States. The 2025 instructions list 30 of them, including the United Kingdom, Canada and Japan, and under those agreements you generally pay only in the country where you live. Foreign Earned Income Exclusion for Freelancers: The 2026 Guide covers the income tax side.

The Church Employee Rule

Church employee income is W-2 pay from a church or a qualified church-controlled organization that has elected out of employer Social Security and Medicare taxes. Pay for work as a minister does not count. If you have $108.28 or more of it, you file Schedule SE even with no business, and the income goes on line 5a instead of line 2. Most freelancers never use these lines.

Schedule C vs Schedule SE: How the Two Forms Connect

Schedule C and Schedule SE answer different questions. Schedule C works out your business profit: income minus expenses, ending on line 31. Schedule SE takes that profit and works out the self-employment tax on it. The same line 31 figure also goes to Schedule 1, line 3, where it joins your other income for income tax. One profit number feeds two separate taxes.

Line 2 of Schedule SE names two sources: “Schedule C, line 31; and Schedule K-1 (Form 1065), box 14, code A.” The second is partnership income. If you are a partner in a multi-member LLC, your K-1 shows your share, which Schedule K-1 Tax Form: What It Means for S Corp and Partnership Owners explains. Profit from an S corporation K-1 is not on that line. Owners who elect S corporation status pay Social Security and Medicare tax through payroll on their salary instead, as S Corp for Freelancers: When the Tax Savings Are Real describes.

What to Gather Before You Fill It Out

• Your finished Schedule C. You need line 31, net profit. If you might use the nonfarm optional method, you also need line 7, gross income.
• Any partnership K-1. The amount in box 14, code A.
• Every Form W-2 for the year. Use box 3 (Social Security wages) and box 7 (Social Security tips), not box 1. Pre-tax 401(k) deferrals are left out of box 1 but included in box 3, as the 2026 Instructions for Forms W-2 and W-3 explain, so the two boxes often differ.
• Form 4137 or Form 8919. Only if you had unreported tips, or were paid as a contractor by a business that should have treated you as an employee.
• Your net earnings for the three prior years. Only if you are considering the nonfarm optional method.

Schedule SE Part I, Line by Line

The line numbers below come from the final 2025 Schedule SE. The IRS draft 2026 Schedule SE, created April 27, 2026, keeps every line number and changes only the dollar amounts. A draft can still change, so check the final 2026 form when the IRS releases it.

Lines A Through 4c: From Profit to Net Earnings

• Line A. Only for ministers, members of religious orders and Christian Science practitioners who have an approved Form 4361 exemption but also $400 or more of other self-employment earnings. Most freelancers skip it.
• Lines 1a and 1b. Farm profit from Schedule F and certain Conservation Reserve Program payments. Leave them blank if you have no farm income.
• Line 2. Net profit or loss from Schedule C, line 31, plus partnership earnings from K-1 box 14, code A. With two Schedule C businesses, enter the combined total. A loss goes in parentheses.
• Line 3. Combine lines 1a, 1b and 2.
• Line 4a. If line 3 is more than zero, multiply it by 92.35 percent (0.9235). The 92.35 percent is 100 percent minus 7.65 percent, the employer share of Social Security and Medicare tax on a paycheck.
• Line 4b. Only used with the optional methods in Part II.
• Line 4c. Add lines 4a and 4b. The form says: “If less than $400, stop; you don’t owe self-employment tax.”

Lines 5a Through 9: Church Income and the Wage Base

• Lines 5a and 5b. Church employee income from Form W-2, multiplied by 92.35 percent. If 5b is under $100, enter zero.
• Line 6. Add lines 4c and 5b. This is the base for both parts of the tax.
• Line 7. The Social Security wage base, printed on the form: $176,100 on the 2025 form and $184,500 on the 2026 draft. IRS Topic 751 confirms the 2026 figure: “For earnings in 2026, this base limit is $184,500.”
• Line 8a. Social Security wages and tips from all your W-2s (boxes 3 and 7). If the total is $184,500 or more for 2026, skip to line 11, because your job has already used up the Social Security base.
• Lines 8b to 8d. Unreported tips from Form 4137 go on 8b, wages from Form 8919 go on 8c, and line 8d adds 8a through 8c.
• Line 9. Line 7 minus line 8d, which is the room left under the wage base. With no W-2 job, line 9 equals line 7.

Lines 10 Through 13: The Tax and the Deduction

• Line 10. Multiply the smaller of line 6 or line 9 by 12.4 percent. This is the Social Security part.
• Line 11. Multiply line 6 by 2.9 percent. Medicare has no wage base, so this applies to all of line 6.
• Line 12. Add lines 10 and 11. This is your self-employment tax, and it goes to Schedule 2, line 4.
• Line 13. Multiply line 12 by 50 percent. This deduction goes to Schedule 1, line 15.

Worked Example: A Freelancer With $72,000 of Profit

Say a single freelance developer ends 2026 with $72,000 on Schedule C, line 31. She has no W-2 job, no farm income and no church wages. The example is hypothetical, follows the 2026 draft form and rounds to whole dollars.

She reports $10,173 of self-employment tax, which is 14.1 percent of her $72,000 profit. Half of it, $5,087, comes off her income on Schedule 1. That lowers her income tax, but it does not reduce the self-employment tax itself. Income tax is figured separately on Form 1040, and How Much to Set Aside for Taxes on 1099 Income in 2026 works out both taxes together at several profit levels. To run the same lines on your own profit and any W-2 wages, use our self-employment tax calculator.

When Your Profit Passes the Social Security Wage Base

The 12.4 percent stops at the wage base, while the 2.9 percent does not. Say the same developer had a much bigger year: $220,000 of profit and still no W-2 job.

• Line 4a and line 6. $220,000 x 0.9235 = $203,170.
• Line 10. Line 9 ($184,500) is smaller than line 6 ($203,170), so the Social Security part is $184,500 x 0.124 = $22,878.
• Line 11. $203,170 x 0.029 = $5,892.
• Line 12. $22,878 + $5,892 = $28,770, or 13.1 percent of profit, a lower share than the 14.1 percent at $72,000.

The 0.9 Percent Additional Medicare Tax

High earners can owe one more tax that Schedule SE does not calculate. The instructions say a 0.9 percent Additional Medicare Tax may apply if line 6 of all your Schedules SE is above $200,000 for a single filer, $250,000 for married filing jointly or $125,000 for married filing separately. You figure it on Form 8959. In the $220,000 example, line 6 is $203,170, so the tax is ($203,170 – $200,000) x 0.009 = $29. On the 2025 Schedule 2 it goes on line 11. The draft 2026 Schedule 2 labels line 11 as the Additional Medicare Tax on self-employment income and adds a separate line for wages, so check the final 2026 form.

If You Have a W-2 Job and Freelance on the Side

Your salary and your freelance profit share one Social Security wage base. Lines 8a and 9 make sure you do not pay the 12.4 percent twice on the same dollars. Say a single filer earns $150,000 of W-2 wages in 2026, all of it in box 3, plus $60,000 of Schedule C profit.

• Line 4a and line 6. $60,000 x 0.9235 = $55,410.
• Line 8a. $150,000 from W-2 box 3.
• Line 9. $184,500 – $150,000 = $34,500 of wage base left.
• Line 10. The smaller of $55,410 and $34,500 is $34,500, and $34,500 x 0.124 = $4,278.
• Line 11. $55,410 x 0.029 = $1,607.
• Line 12. $4,278 + $1,607 = $5,885 of self-employment tax.
• Line 13. $5,885 x 0.50 = $2,942.50, which rounds to $2,943.

Without line 9, the Social Security part would have been $55,410 x 0.124 = $6,871. The wage base cuts it by $2,593, because $20,910 of her freelance earnings ($55,410 – $34,500) sits above what is left of the base. If her box 3 wages had been $184,500 or more, she would skip lines 8b through 10 and pay only the 2.9 percent Medicare part.

Side Income and the Additional Medicare Tax

The Additional Medicare Tax looks at wages and self-employment income together. The instructions say the $200,000 threshold for self-employment income “is reduced (but not below zero) by the amount of wages subject to Additional Medicare Tax.” Her $150,000 of wages leaves a $50,000 threshold, so Form 8959 charges 0.9 percent on $5,410 ($55,410 – $50,000), which is $49. Her employer withholds nothing for it, because Topic 751 has employers withhold the 0.9 percent only on wages above $200,000. Cover it, along with the $5,885, through a higher W-4 withholding at the day job or through the payments described in Quarterly Estimated Taxes for Freelancers Explained (2026 Guide). Freelancing While Working Full Time: How to Do It Without Risking Your Job covers the rest of the side-income setup.

Part II: The Optional Methods

Part II lets some people report more net earnings than their actual profit. The instructions give the reason: the optional methods “may give you credit toward your social security coverage even though you have a loss or a small amount of income from self-employment.” They can also raise the earned income credit, the additional child tax credit or the child and dependent care credit. The cost is a higher self-employment tax.

The nonfarm optional method is the one most freelancers could use. On the 2026 draft, you qualify only if all of these are true:

• Low profit. Your net nonfarm profit is less than $8,186 ($7,840 on the 2025 form).
• Low margin. Your net nonfarm profit is also less than 72.189 percent of your gross nonfarm income from Schedule C, line 7.
• A history of self-employment. You had net earnings from self-employment of $400 or more in at least 2 of the 3 years before.
• Uses left. You can use the method for only 5 years in total, and the years do not need to be consecutive.

Under the method, you skip line 2 and report two-thirds of your gross nonfarm income on line 17, up to the limit on line 16: $7,560 on the 2026 draft and $7,240 for 2025. Say you had $6,000 of gross income and $1,500 of profit in 2026, and you meet the history test. Your profit is under $8,186 and under $4,331 (72.189 percent of $6,000), so you qualify. Two-thirds of $6,000 is $4,000, which goes on line 17 and then line 4b.

• Regular method. $1,500 x 0.9235 = $1,385 of net earnings, and $212 of self-employment tax.
• Optional method. $4,000 of net earnings, and $4,000 x 15.3 percent = $612 of self-employment tax.

You pay $400 more, and your Social Security record shows $4,000 of earnings for the year instead of $1,385. The farm optional method follows similar rules for Schedule F income. The instructions warn that the optional methods “may also increase your SE tax,” so figure your return both ways before you choose. You can change methods after filing with Form 1040-X.

Where the Schedule SE Results Go on Form 1040

• Line 12 to Schedule 2, line 4. Schedule 2 adds it into line 21, total other taxes, which goes to Form 1040, line 23. On the draft 2026 Form 1040, line 23 reads “Additional taxes, including self-employment tax, from Schedule 2, line 21.”
• Line 13 to Schedule 1, line 15. It becomes part of the adjustments total on Schedule 1, line 26, which goes to Form 1040, line 10, and lowers your adjusted gross income. The IRS self-employment tax page calls this deducting “the employer-equivalent portion of your self-employment tax.”
• Form 8959, if it applies. The Additional Medicare Tax goes to Schedule 2 as described above.

Two other parts of your return use these numbers. The deductible half of the tax reduces the qualified business income that the 20 percent QBI deduction starts from, as The QBI Deduction for Freelancers: How the 20% Really Works in 2026 explains. And because nobody withholds self-employment tax, you pay it through estimated payments during the year. The last payment for 2026 is due January 15, 2027, and the 2026 Form 1040-ES says you can skip it if you file your 2026 return by February 1, 2027 and pay the entire balance due with it.

Common Schedule SE Mistakes

• Using box 1 of your W-2. Line 8a asks for Social Security wages in box 3 plus tips in box 7. Box 1 is often lower, which would overstate the room left under the wage base.
• Skipping the form on a small profit. The $400 test applies to line 4c, so a $434 profit already needs Schedule SE, even in a year when you owe no income tax.
• Using the wrong year’s wage base. Line 7 is $176,100 for 2025 and $184,500 for 2026. Use the figure printed on the form for the year you are filing.
• One form for two spouses. Each spouse with self-employment income files a separate Schedule SE, even on a joint return.
• Deducting all of the tax. Only the line 13 amount, half of line 12, goes on Schedule 1.
• Leaving out income with no 1099. Line 2 starts from Schedule C profit, which includes every payment you received, with or without a form. How to Report Freelance Income When You Did Not Get a 1099 shows how to record it.

Conclusion

Schedule SE takes your Schedule C profit, multiplies it by 92.35 percent, and charges 12.4 percent up to the $184,500 wage base for 2026 plus 2.9 percent on everything. The total goes to Schedule 2, line 4, and half of it comes back as a deduction on Schedule 1, line 15. A W-2 job shrinks the room under the wage base through line 8a, and the optional methods let a low-profit year count toward Social Security at a higher tax cost.

Before you file, pull line 31 from your Schedule C and box 3 from every W-2, then fill in the lines in order. Check the final 2026 form when the IRS releases it, since amounts on a draft can still change. If the total is higher than you planned for, raise your estimated payments for 2027, and use our income goal planner to build the tax into your profit target from the start.

Key Takeaways

• You must file Schedule SE if line 4c is $400 or more, which starts at $434 of Schedule C profit in whole dollars, or if you have $108.28 or more of church employee income.
• Line 4a multiplies profit by 92.35 percent, line 10 charges 12.4 percent up to the wage base ($176,100 for 2025, $184,500 for 2026), and line 11 charges 2.9 percent on all net earnings.
• On $72,000 of profit with no W-2 job, 2026 self-employment tax is $10,173, and the deduction on Schedule 1 is $5,087.
• W-2 Social Security wages from box 3 go on line 8a: $150,000 of wages left $34,500 of wage base and cut the Social Security part on $60,000 of profit by $2,593.
• Line 12 goes to Schedule 2, line 4, and line 13 goes to Schedule 1, line 15, while the 0.9 percent Additional Medicare Tax is figured separately on Form 8959.
• The nonfarm optional method on the 2026 draft requires profit under $8,186 and under 72.189 percent of gross income, reports up to $7,560, and can be used for only 5 years.

Frequently Asked Questions

Who should file Schedule SE?

You file Schedule SE if your net earnings from self-employment on line 4c are $400 or more, or if you had $108.28 or more of church employee income. Because line 4c is profit times 92.35 percent, a Schedule C profit of $434 or more triggers the form. Age and Social Security benefits do not change this, and each spouse with self-employment income files a separate Schedule SE.

What is the difference between Schedule C and Schedule SE?

Schedule C works out your business profit, income minus expenses, on line 31. Schedule SE takes that profit and calculates the Social Security and Medicare tax on it. The same profit also goes to Schedule 1, line 3, for income tax. Most freelancers file both forms with Form 1040.

How do I fill out a Schedule SE form?

Enter your Schedule C line 31 profit on line 2, multiply it by 92.35 percent on line 4a, and carry it down to line 6. Enter your W-2 box 3 wages on line 8a and subtract them from the wage base on line 7 ($184,500 for 2026) to get line 9. Line 10 is 12.4 percent of the smaller of lines 6 and 9, line 11 is 2.9 percent of line 6, line 12 adds them, and line 13 is half of line 12.

How do I calculate my self-employment tax using Schedule SE?

Multiply net profit by 0.9235, then multiply the result by 15.3 percent if it is under the $184,500 wage base for 2026 and you have no W-2 wages. On $72,000 of profit, that is $66,492 x 15.3 percent, or $10,173 when lines 10 and 11 are rounded separately. Half of it, $5,087, is deductible on Schedule 1, line 15.

Do I need to file Schedule SE if my business had a loss?

Usually not. If line 4c is less than $400, the form tells you to stop because you owe no self-employment tax. You may still choose to file it and use an optional method, which can give you Social Security credit for the year. On the 2026 draft, the nonfarm optional method reports up to $7,560 of earnings, and you pay 15.3 percent on that amount.