Schedule SE Inputs
Net profit from Schedule C
$
$
Schedule SE — Line by Line
2026 IRS method · SS base $184,500
Total Self-Employment Tax (Schedule SE)
—
Deductible half: — · Effective SE rate: —
Schedule SE Walkthrough
Line 2 — Net SE Income
From Schedule C, Line 31
—
Line 3 — 92.35% Adjustment
Net × 0.9235 (employer-equivalent deduction)
—
Line 4a — SS Taxable Base
Min(Line 3, $184,500 − W-2 wages)
—
Line 4b — Social Security Tax (12.4%)
Line 4a × 12.4%
—
Line 5 — Medicare Tax (2.9%)
Line 3 × 2.9% (no wage base cap)
—
Additional Medicare Tax (0.9%)
On combined income over threshold
—
Line 12 — Total SE Tax
SS + Medicare + Additional Medicare
—
Deductible Half (Sched. 1, Line 15)
50% of SE tax — above-the-line deduction
—
Estimated Quarterly Payment
SE tax ÷ 4 (add income tax for total quarterly)
—
Advertisement
⚠️ Mirrors IRS Schedule SE (Form 1040). SS wage base $184,500 per SSA. Additional Medicare Tax applies to combined income above threshold (not just SE income). Not tax advice. File Schedule SE annually with Form 1040.
Understanding Schedule SE
The 3 key Schedule SE concepts
92.35%
Why not 100%?
The 92.35% factor mirrors the employer-equivalent deduction W-2 employers receive on their FICA match. Since self-employed workers pay both halves, the IRS reduces the taxable base by the "employer half" (7.65%) before applying 15.3% — a built-in fairness adjustment.
50%
The deductible half
50% of your SE tax is deductible on Schedule 1 of Form 1040 as an above-the-line deduction, reducing your AGI and therefore income tax — not the SE tax itself. For a $75K earner this typically saves $1,400–$2,000 in federal income tax annually.
$184,500
The SS wage base cap
Only the first $184,500 of combined W-2 wages and SE income is subject to the 12.4% Social Security portion. Income above this still owes 2.9% Medicare (no cap). W-2 wages are applied first — they reduce the SS wage base available to your SE income.
More Calculators
Related tools
FAQ
Schedule SE questions
Who needs to file Schedule SE?+
You must file Schedule SE if net self-employment income was $400 or more during the year. This includes sole proprietors, freelancers, independent contractors, single-member LLC owners, and partners in partnerships. Attach Schedule SE to your annual Form 1040.
Why does Schedule SE use 92.35% instead of 100%?+
The 92.35% factor (1 minus 7.65%) represents the employer-equivalent half of FICA. W-2 employers deduct their 7.65% FICA match as a business expense. Self-employed workers pay both halves themselves, so the IRS allows a comparable adjustment — reducing the taxable base before applying the 15.3% rate.
What is the Additional Medicare Tax on Schedule SE?+
An extra 0.9% Medicare surtax applies to SE income above $200,000 (single) or $250,000 (MFJ). It's calculated on the 92.35%-adjusted SE earnings that exceed the threshold after accounting for W-2 wages. This portion is NOT deductible — unlike the standard 2.9% Medicare tax.
Can I deduct all my SE tax from income?+
Only 50% is deductible, as an above-the-line deduction on Schedule 1, Line 15. This reduces your AGI before the standard deduction. The other 50% is not deductible. The deduction mirrors how W-2 employees don't pay income tax on the employer's FICA match — it never appears in their gross wages.