A couple of really simple tax return questions regarding Self-Employment Tax.

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.

  1. So… I assume I should enter zero on Line 56 of Form 1040 (“Self-employment tax”). Right?

  2. And do I also enter zero on Line 27 of Form 1040 (“Deductible part of self-employment tax”)?

Thanks all, in advance.

CPA here.

That is correct. If 92.35% of your total net income from self-employment jobs is less than 400, you are not required to pay self employment taxes on that income. You would leave the lines for Self-employment tax and the line for the adjustment for 1/2 of self-employment tax paid blank and are nit required to file Schedule SE.

Thanks, Nothar!