I’m filing my 2012 tax returns now because I got an extension.
I have a regular salary job, but I also make a small amount of additional income from speaking fees. 2012 was not a great year for me for this type of income – I only made a profit of $265.
According to Schedule SE Line 4, because $265 x 92.35% equals less than $400, I do not owe self-employment tax (Yay!) and I do not have to submit Schedule SE with my return.
So… I assume I should enter zero on Line 56 of Form 1040 (“Self-employment tax”). Right?
And do I also enter zero on Line 27 of Form 1040 (“Deductible part of self-employment tax”)?
Thanks all, in advance.