Schedule SE (Form 1040) 2025 - Self-Employment Tax - Instructions and Calculation Worksheet

Sep 3, 2026

Schedule SE (Form 1040) 2025 calculates self-employment tax by combining net earnings from farming and nonfarm activities, including optional methods to determine net earnings when eligible. The form provides step-by-step line computations for Social Security and Medicare portions, applies required percentage multipliers, and determines the total self-employment tax. It also includes the deduction for one-half of the self-employment tax and provides supplemental optional method rules and limits for qualifying taxpayers.

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Self-Employment Tax

Part I - Computation lines 1a through 13

Part II - Optional methods and lines 14 through 17

| 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 | | --- | --- | --- | --- | | | | | 2025
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 | | Partl # Self-Employment Tax Skip lines 1a and 1b if you use the farm optional method in Part II.See instructions. | 1a Net farm profit or(loss)from Schedule F,line 34,and farm partnerships,Sched
box 14,code A ······················
b If you received social security retirement or disability benefits,enter the amount of
Program payments included on Schedule F,line 4b,or listed on Schedule K-1 (Fom 1
Skip line 2 if you use the nonfarm optional method in Part I.See instructions.
2 Net profit or (loss)from Schedule C,line 31;and Schedule K-1 (Fom 1065),box
faming).See instructions for other income to report or if you are a minister or memb
3 Combine lines 1a,1b,and 2.....·........·...
4a If line 3 is more than zero,multiply line 3 by 92.35%(0.9235).Otherwise,enter am
Note:If line 4a is less than $400 due to Conservation Reserve Program payments on lin
b If you elect one or both of the optional methods,enter the total of lines 15 and 17
c Combine lines 4a and 4b.If less than $400,stop;you don't owe self-employm
less than $400 and you had church employee income,enter-0-and continue.
5a Enter your church employee income from Form W-2.See instructions for
definition of church employee income·· ········.
b Multiply line 5a by 92.35%(0.9235).If less than $100,enter-0- ···
6 Add lines 4c and 5b ...........
7 Maximum amount of combined wages and self-employment earnings subject to
the 6.2%portion of the 7.65%railroad retirement(tier 1)tax for 2025 ...
8a Total social security wages and tips (total of boxes 3 and 7 on Form(s)W-2)
and railroad retirement (tier 1)compensation.If $176,100 or more,skip lines
8b through 10,and go to line 11 ...............
b Unreported tips subject to social security tax from Form 4137,line 10...
c Wages subject to social security tax from Form 8919,line 10......
d Add lines 8a,8b,and 8c.··················
9 Subtract line 8d from line 7.If zero or less,enter -0-here and on line 10 and go to
10 Multiply the smaller of line 6 or line 9 by 12.4%(0.124)....··...
11 Multiply line 6 by 2.9%(0.029)..·······.·······
12 Self-employment tax.Add lines 10 and 11.Enter here and on Schedule 2(F
Form 1040-SS,Part I,line 3 .............
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.... | ule K
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ount
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5a | -1(Form 1065),
····.
ervation Reserve
box 20,code AQ
de A(other than
religious order
.....
from line 3.
see instructions.
.···.
x.Exception:If
···.. | 1a | | | --- | --- | --- | --- | --- | | | | | 1b | | | | | | 2 | | | | | | 3 | | | | | | 4a | | | | | | 4b | | | | | | 4c | | | | | | | | | | ·
socia
8a | ··
···
l security tax or | 5b | | | | | | 6 | | | | | | 7 | $176,100 | | | | | | | | | 8b | | | | | | 8c | | | | | | ··
line
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orm
13 | .
11
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040),line 4,or | 8d | | | | | | 9 | | | | | | 10 | | | | | | 11 | | | | | | 12 | | | | | | | | For Paperwork Reduction Act Notice,se

FAQs

Which parts of income are used to compute self-employment tax on Schedule SE (Form 1040) 2025?

The form uses net farm profit (or loss), net nonfarm profit (or loss), and combines those amounts into a total net earnings figure. It also incorporates church employee income when applicable.

When can taxpayers skip lines 1a and 1b or line 2 on Schedule SE?

Lines 1a and 1b can be skipped if the farm optional method is used in Part II. Line 2 can be skipped if the nonfarm optional method is used in Part I, following the instructions.

What are the optional method rules for farm and nonfarm calculations in Part II?

The farm optional method is available only when gross farm income and/or net farm profits fall below specified thresholds. The nonfarm optional method requires net nonfarm profits below limits, additional prior-year net earnings requirements, and a caution that it can be used no more than five times.

Sep 3, 2026

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