How to Calculate Self-Employment Tax

EasyInstructions
Things You'll Need:
Financial Statements
Financial Calculator
Paper And Pencils
Computers
Tax Software
1
Figure out your net income from self-employment. Net income is typically your total business receipts minus your total business deductions.
2
Multiply your net income from self-employment by 0.9235 (or 92.35 percent). Your answer is called your "net earnings" from self-employment. If this number is less than $400, you don't have to pay self-employment tax.
3
Multiply the amount of your net earnings that is $76,200 or less by 0.153 (or 15.3 percent), and multiply any net earnings over $76,200 by 0.029 (or 2.9 percent). Add your two answers together. This is your self-employment tax.
4
Factor in your deductions. You can deduct half of your self-employment tax in determining your adjusted gross income. Do this in the Adjustments section of the 1040. Interest, dividends, capital gains, rental income, pensions and other forms of unearned income are not subject to self-employment tax.
5
Report your self-employment tax on Schedule SE of the 1040.