Joanne Plummer is self-employed in 2018. Her Schedule C net income is $30,366 for the year, and Joanne also had a part-time job and earned $4,400 which was subject to FICA tax. Joanne received taxable dividends of $1,110 during the year, and she had a capital gain on the sale of stock $9,100.

Calculate Joanne's self-employment tax using page 1 of Schedule SE of Form 1040.

  

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May I Use Short Schedule SE or Must I Use Long Schedule SE? Note. Use this flowchart only if you must file Schedule SE. If unsure, see Who Must File Schedule SE in the instructions. No Are you a minister, member of a religious order, or Christian Science practitioner who received IRS approval not to be taxed on earnings from these sources, but you owe self-employment tax on other earnings? No Did you receive wages or tips in 2018? Are you using one of the optional methods to figure your net earnings (see instructions)? No Did you receive church employee income (see instructions) reported on Form W-2 of $108.28 or more? No You may use Short Schedule SE below. Yes Yes Yes No Yes Was the total of your wages and tips subject to social security or railroad retirement (tier 1) tax plus your net earnings from self-employment more than $128,400? No Did you receive tips subject to social security or Medicare tax that you didn't report to your employer? LLO No Did you report any wages on Form 8919, Uncollected Social Security and Medicare Tax on Wages? You must use Long Schedule SE on page 2 Yes Yes Yes May I Use Short Schedule SE or Must I Use Long Schedule SE? Note. Use this flowchart only if you must file Schedule SE. If unsure, see Who Must File Schedule SE in the instructions. No Are you a minister, member of a religious order, or Christian Science practitioner who received IRS approval not to be taxed on earnings from these sources, but you owe self-employment tax on other earnings? No Did you receive wages or tips in 2018? Are you using one of the optional methods to figure your net earnings (see instructions)? No Did you receive church employee income (see instructions) reported on Form W-2 of $108.28 or more? No You may use Short Schedule SE below. Yes Yes Yes No Yes Was the total of your wages and tips subject to social security or railroad retirement (tier 1) tax plus your net earnings from self-employment more than $128,400? No Did you receive tips subject to social security or Medicare tax that you didn't report to your employer? LLO No Did you report any wages on Form 8919, Uncollected Social Security and Medicare Tax on Wages? You must use Long Schedule SE on page 2 Yes Yes Yes

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Income earned by an individual by working for hisher interest with the intention of earning profits ... View the full answer