Page 252 - Individual Forms & Instructions Guide

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Department of the Treasury Schema: Leadpct: 100% Pt. size: 10 (Init. & Date) _______
Internal Revenue Service
2022 Instructions for Schedule SE

Use Schedule SE (Form 1040) to figure the tax due on net earnings from self-employ-
Self-Employment ment. The Social Security Administration uses the information from Schedule SE to
Tax figure your benefits under the social security program. This tax applies no matter how
old you are and even if you are already getting social security or Medicare benefits.
Additional information. See Pub. 225 or Pub. 334.
Section references are to the Internal Christian Science Practitioners and a religious order who hasn’t taken a vow
Revenue Code unless otherwise noted. Members of Certain Religious Sects, lat- of poverty, or Christian Science practi-
Future Developments er, for information on how to report your tioner. But if you filed Form 4361 and
self-employment earnings.
received IRS approval, you will be ex-
For the latest information about devel- Even if you had a loss or a empt from paying SE tax on those net
opments related to Schedule SE (Form TIP small amount of income from earnings. If you had no other income
1040) and its instructions, such as legis- self-employment, it may be to subject to SE tax, enter “Exempt—Form
lation enacted after they were published, your benefit to file Schedule SE and use 4361” on Schedule 2 (Form 1040),
go to IRS.gov/ScheduleSE. either "optional method" in the instruc- line 4. However, if you had other earn-
tions for Part II of Schedule SE (dis- ings of $400 or more subject to SE tax,
What's New cussed later). see line A at the top of Schedule SE.
If you have ever filed Form
Maximum income subject to social se- Who Must Pay 2031 to elect social security
curity tax. For 2022, the maximum ! coverage on your earnings as a
CAUTION
amount of self-employment income sub- Self-Employment (SE) Tax minister, you can’t revoke that election.
ject to social security tax is $147,000. Self-Employed Persons
If you must pay SE tax, include this
Reminder You must pay SE tax if you had net income on Schedule SE, line 2. But
earnings of $400 or more as a self-em-
Self-employed tax payments deferred ployed person. If you are in business don’t report it on Schedule SE, line 5a;
it isn’t considered church employee in-
in 2020. Previous legislation allowed (farm or nonfarm) for yourself, you are come. Also, include on line 2:
for self-employed individuals to defer self-employed. • The rental value of a home or an
the payment of certain social security You must also pay SE tax on your allowance for a home furnished to you
taxes from 2020 over the next 2 years. share of certain partnership income and (including payments for utilities); and
See IRS.gov/Payments for more infor- your guaranteed payments. See Partner-
• The value of meals and lodging
mation about payment options. ship Income or Loss, later. provided to you, your spouse, and your
General Employees of Churches and dependents for your employer's conven-
ience.
Instructions Church Organizations However, don’t include on line 2:
If you had church employee income of • Retirement benefits you received
Who Must File Schedule SE $108.28 or more, you must pay SE tax. from a church plan after retirement, or
Church employee income is wages you • The rental value of a home or an
You must file Schedule SE if: allowance for a home furnished to you
• The amount on line 4c of Sched- received as an employee (other than as a
ule SE is $400 or more, or minister, member of a religious order, or (including payments for utilities) after
retirement.
• You had church employee income Christian Science practitioner) of a
of $108.28 or more. (Income from serv- church or qualified church-controlled or- If you were a duly ordained minister
ices you performed as a minister, mem- ganization that has a certificate in effect who was an employee of a church and
ber of a religious order, or Christian Sci- electing an exemption from employer you must pay SE tax, the unreimbursed
ence practitioner isn't church employee social security and Medicare taxes. business expenses that you incurred as a
income.) See Employees of Churches church employee are not deductible as
and Church Organizations, later. Ministers, Members of Religious an itemized deduction for income tax
Exception to filing Schedule SE. If Orders, and Christian Science purposes. However, when figuring SE
you filed Form 4029 or Form 4361 and Practitioners tax, subtract on line 2 the allowable ex-
received IRS approval, you may not In most cases, you must pay SE tax on penses from your self-employment earn-
need to file Schedule SE. See Ministers, salaries and other income for services ings and attach an explanation.
Members of Religious Orders, and you performed as a minister, member of
SE-1
Aug 25, 2022 Cat. No. 24334P