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self employment tax

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B

bret1966

Guest
do i pay self employment tax on the total amount on my 1099 or the amount that is taxable after deductions? i know i will not owe federal or state but i'm not sure how the self employment tax works thanks
 


L

loku

Guest
It sounds like you should show your work as a business on Schedule C of Form 1040. The self-employment tax is charged on NET profit shown on Schedule C (income less expenses of doing business). As you fill out Schedule C, you will be led to Schedule SE, on which you figure the self-employment tax.
 

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