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Common questions on Schedule SE Self-Employment tax in Lacerte

SOLVED•by Intuit•95•Updated 2 weeks ago

Use Schedule SE (Form 1040) to figure the tax due on net earnings from self-employment. The Social Security Administration uses the information from Schedule SE to 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. Lacerte will automatically generate the Schedule SE based on entries on the Schedule C, Schedule F, and Partnership K-1s.

For Schedule C filers:

  1. Go to Screen 16, Business Income (Schedule C).
  2. From the Sections list, select Other Information.
  3. Select the Not subject to self-employment tax box.

If form 4361 has been filed:

  1. Go to Screen 45.1, Self-Employment Tax (Schedule SE).
  2. On the line 1=exempt and filed Form 4361 enter a 1.

If form 4029 has been filed:

  1. Go to Screen 45.1, Self-Employment Tax (Schedule SE).
  2. On the line 1=exempt and filed Form 4029 enter a 1.

SE farm and non farm income can be increased and decreased on Screen 45.1, Self-Employment Tax (Schedule SE).

Amounts can be entered under Farm "Net income [A]" and under Nonfarm "Net income [A]".

The [A] indicates an adjustment line, which means a negative amount will reduce the amount that is already being reported and a positive amount will add on to the amount that is already being reported.

From page 1 of the 2022 Schedule SE instructions: "Self-employed tax payments deferred in 2020. Previous legislation allowed for self-employed individuals to defer the payment of certain social security taxes from 2020 over the next 2 years. See IRS.gov/Payments for more information about payment options."

Part III was added to Schedule SE to allow self-employed persons to figure a maximum amount of self-employment tax payments which may be deferred. All maximum deferral amounts will be carried to Schedule 3 (Form 1040), and the total amount that you may elect to defer may be further reduced.

To make the deferral election in Lacerte 2020:

  1. Open the tax return.
  2. Open Screen 45.1 Self-Employment Tax (Schedule SE).
  3. Check the box for Elect to defer maximum allowed amount of Schedule SE or H taxes to 12/31/21 or 12/31/22.
  4. The Schedule SE Part III will still calculate and the deferral amount will transfer to the Schedule 3 line 12e.

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