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File taxes online free 12. File taxes online free   Self-Employment Tax Table of Contents What's New for 2013 What's New for 2014 Introduction Topics - This chapter discusses: Useful Items - You may want to see: Why Pay Self-Employment Tax? How To Pay Self-Employment TaxReplacing a lost social security card. File taxes online free Name change. File taxes online free Penalty for underpayment of estimated tax. File taxes online free Who Must Pay Self-Employment Tax?Limited partner. File taxes online free Community property. File taxes online free Figuring Self-Employment EarningsLandlord Participation in Farming Methods for Figuring Net EarningsRegular Method Farm Optional Method Nonfarm Optional Method Using Both Optional Methods Reporting Self-Employment Tax What's New for 2013 Tax rates. File taxes online free  For tax years beginning in 2013, the social security part of the self-employment tax increases from 10. File taxes online free 4% to 12. File taxes online free 4%. File taxes online free The Medicare part of the tax remains at 2. File taxes online free 9%. File taxes online free As a result, the self-employment tax is increased from 13. File taxes online free 3% to 15. File taxes online free 3%. File taxes online free Additional Medicare Tax. File taxes online free . File taxes online free  For tax years beginning in 2013, a 0. File taxes online free 9% Additional Medicare Tax applies to your Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income above a threshold amount. File taxes online free Use Form 8959, Additional Medicare Tax, to figure this tax. File taxes online free For more information, see the Instructions for Form 8959. File taxes online free Maximum net earnings. File taxes online free  The maximum net self-employment earnings subject to the social security part (12. File taxes online free 4%) of the self-employment tax increased to $113,700 for 2013. File taxes online free There is no maximum limit on earnings subject to the Medicare part (2. File taxes online free 9%). File taxes online free What's New for 2014 Maximum net earnings. File taxes online free  The maximum net self-employment earnings subject to the social security part of the self-employment tax for 2014 will be discussed in the 2013 Publication 334. File taxes online free Introduction Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. File taxes online free It is similar to the social security and Medicare taxes withheld from the pay of most wage earners. File taxes online free You usually have to pay SE tax if you are self-employed. File taxes online free You are usually self-employed if you operate your own farm on land you either own or rent. File taxes online free You have to figure SE tax on Schedule SE (Form 1040). File taxes online free Farmers who have employees may have to pay the employer's share of social security and Medicare taxes, as well. File taxes online free See chapter 13 for information on employment taxes. File taxes online free Self-employment tax rate. File taxes online free   For tax years beginning in 2013, the self-employment tax rate is 15. File taxes online free 3%. File taxes online free The rate consists of two parts: 12. File taxes online free 4% for social security (old-age, survivors, and disability insurance) and 2. File taxes online free 9% for Medicare (hospital insurance). File taxes online free Topics - This chapter discusses: Why pay self-employment tax How to pay self-employment tax Who must pay self-employment tax Figuring self-employment earnings Landlord participation in farming Methods for figuring net earnings Reporting self-employment tax Useful Items - You may want to see: Publication 541 Partnerships Form (and Instructions) 1040 U. File taxes online free S. File taxes online free Individual Income Tax Return Sch F (Form 1040) Profit or Loss From Farming Sch SE (Form 1040) Self-Employment Tax 1065 U. File taxes online free S. File taxes online free Return of Partnership Income Sch K-1 (Form 1065) Partner's Share of Income, Deductions, Credits, etc. File taxes online free See chapter 16 for information about getting publications and forms. File taxes online free Why Pay Self-Employment Tax? Social security benefits are available to self-employed persons just as they are to wage earners. File taxes online free Your payments of SE tax contribute to your coverage under the social security system. File taxes online free Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits. File taxes online free How to become insured under social security. File taxes online free   You must be insured under the social security system before you begin receiving social security benefits. File taxes online free You are insured if you have the required number of credits (also called quarters of coverage). File taxes online free Earning credits in 2013. File taxes online free   You can earn a maximum of four credits per year. File taxes online free For 2013, you earn one credit for each $1,160 of combined wages and self-employment earnings subject to social security tax. File taxes online free You need $4,640 ($1,160 × 4) of combined wages and self-employment earnings subject to social security tax to earn four credits in 2013. File taxes online free It does not matter whether the income is earned in 1 quarter or is spread over 2 or more quarters. File taxes online free For an explanation of the number of credits you must have to be insured and the benefits available to you and your family under the social security program, consult your nearest Social Security Administration (SSA) office or visit the SSA website at www. File taxes online free socialsecurity. File taxes online free gov. File taxes online free Making false statements to get or to increase social security benefits may subject you to penalties. File taxes online free The Social Security Administration (SSA) time limit for posting self-employment earnings. File taxes online free   Generally, the SSA will give you credit only for self-employment earnings reported on a tax return filed within 3 years, 3 months, and 15 days after the tax year you earned the income. File taxes online free    If you file your tax return or report a change in your self-employment earnings after the SSA time limit for posting self-employment earnings, the SSA may change its records, but only to remove or reduce the amount. File taxes online free The SSA will not change its records to increase your self-employment earnings after the SSA time limit listed above. File taxes online free How To Pay Self-Employment Tax To pay SE tax, you must have a social security number (SSN) or an individual taxpayer identification number (ITIN). File taxes online free This section explains how to: Obtain an SSN or ITIN, and Pay your SE tax using estimated tax. File taxes online free An ITIN does not entitle you to social security benefits. File taxes online free Obtaining an ITIN does not change your immigration or employment status under U. File taxes online free S. File taxes online free law. File taxes online free Obtaining a social security number. File taxes online free   If you have never had an SSN, apply for one using Form SS-5, Application for a Social Security Card. File taxes online free The application is also available in Spanish. File taxes online free You can get this form at any Social Security office or by calling 1-800-772-1213. File taxes online free    You can also download Form SS-5 from the Social Security Administration website at  www. File taxes online free socialsecurity. File taxes online free gov. File taxes online free   If you have a social security number from the time you were an employee, you must use that number. File taxes online free Do not apply for a new one. File taxes online free Replacing a lost social security card. File taxes online free   If you have a number but lost your card, file Form SS-5. File taxes online free You will get a new card showing your original number, not a new number. File taxes online free Name change. File taxes online free   If your name has changed since you received your social security card, complete Form SS-5 to report a name change. File taxes online free Obtaining an individual taxpayer identification number. File taxes online free   The IRS will issue you an ITIN, for tax use only, if you are a nonresident or resident alien and you do not have, and are not eligible to get, an SSN. File taxes online free To apply for an ITIN, file Form W-7, Application for IRS Individual Taxpayer Identification Number. File taxes online free You can get this form by calling 1-800-829-3676. File taxes online free For more information on ITINs, see Publication 1915, Understanding Your IRS Individual Taxpayer Identification Number. File taxes online free Form W-7 and Publication 1915 are also available in Spanish. File taxes online free    You can also download Form W-7 from the IRS website at IRS. File taxes online free gov. File taxes online free Paying estimated tax. File taxes online free   Estimated tax is the method used to pay tax (including SE tax) on income not subject to withholding. File taxes online free You generally have to make estimated tax payments if you expect to owe tax, including SE tax, of $1,000 or more when you file your return. File taxes online free Use Form 1040-ES, Estimated Tax for Individuals, to figure and pay the tax. File taxes online free   However, if at least two-thirds of your gross income for 2013 or 2014 was from farming and you file your 2014 Form 1040 and pay all the tax due by March 2, 2015, you do not have to pay any estimated tax. File taxes online free For more information about estimated tax for farmers, see chapter 15. File taxes online free Penalty for underpayment of estimated tax. File taxes online free   You may have to pay a penalty if you do not pay enough estimated tax by its due date. File taxes online free Who Must Pay Self-Employment Tax? You must pay SE tax and file Schedule SE (Form 1040) if your net earnings from self-employment were $400 or more. File taxes online free The SE tax rules apply no matter how old you are and even if you are already receiving social security or Medicare benefits. File taxes online free Aliens. File taxes online free   Generally, resident aliens must pay self-employment tax under the same rules that apply to U. File taxes online free S. File taxes online free citizens. File taxes online free Nonresident aliens are not subject to self-employment tax. File taxes online free However, residents of the Virgin Islands, Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, or American Samoa are subject to self-employment tax, as they are considered U. File taxes online free S. File taxes online free residents for self-employment tax purposes. File taxes online free For more information on aliens, see Publication 519, U. File taxes online free S. File taxes online free Tax Guide for Aliens. File taxes online free Are you self-employed?   You are self-employed if you carry on a trade or business (such as running a farm) as a sole proprietor, an independent contractor, a member of a partnership, or are otherwise in business for yourself. File taxes online free A trade or business is generally an activity carried on for a livelihood or in good faith to make a profit. File taxes online free Share farmer. File taxes online free   You are a self-employed farmer under an income-sharing arrangement if both the following apply. File taxes online free You produce a crop or raise livestock on land belonging to another person. File taxes online free Your share of the crop or livestock, or the proceeds from their sale, depends on the amount produced. File taxes online free Your net farm profit or loss from the income-sharing arrangement is reported on Schedule F (Form 1040) and included in your self-employment earnings. File taxes online free   If you produce a crop or livestock on land belonging to another person and are to receive a specified rate of pay, a fixed sum of money, or a fixed quantity of the crop or livestock, and not a share of the crop or livestock or their proceeds, you may be either self-employed or an employee of the landowner. File taxes online free This will depend on whether the landowner has the right to direct or control your performance of services. File taxes online free Example. File taxes online free A share farmer produces a crop on land owned by another person on a 50-50 crop-share basis. File taxes online free Under the terms of their agreement, the share farmer furnishes the labor and half the cost of seed and fertilizer. File taxes online free The landowner furnishes the machinery and equipment used to produce and harvest the crop, and half the cost of seed and fertilizer. File taxes online free The share farmer is provided a house in which to live. File taxes online free The landowner and the share farmer decide on a cropping plan. File taxes online free The share farmer is a self-employed farmer for purposes of the agreement to produce the crops, and the share farmer's part of the profit or loss from the crops is reported on Schedule F (Form 1040) and included in self-employment earnings. File taxes online free The tax treatment of the landowner is discussed later under Landlord Participation in Farming. File taxes online free Contract farming. File taxes online free   Under typical contract farming arrangements, the grower receives a fixed payment per unit of crops or finished livestock delivered to the processor or packing company. File taxes online free Since the grower typically furnishes labor and bears some production risk, the payments are reported on Schedule F and are therefore subject to self-employment tax. File taxes online free 4-H Club or FFA project. File taxes online free   If an individual participates in a 4-H Club or Future Farmers of America (FFA) project, any net income received from sales or prizes related to the project may be subject to income tax. File taxes online free Report the net income as “Other income” on line 21 of Form 1040. File taxes online free If necessary, attach a statement showing the gross income and expenses. File taxes online free The net income may not be subject to SE tax if the project is primarily for educational purposes and not for profit, and is completed by the individual under the rules and economic restrictions of the sponsoring 4-H or FFA organization. File taxes online free Such a project is generally not considered a trade or business. File taxes online free Partners in a partnership. File taxes online free   Generally, you are self-employed if you are a member of a partnership that carries on a trade or business. File taxes online free Limited partner. File taxes online free   If you are a limited partner, your partnership income is generally not subject to SE tax. File taxes online free However, guaranteed payments you receive for services you perform for the partnership are subject to SE tax and should be reported to you in box 14 of your Schedule K-1 (Form 1065). File taxes online free Business Owned and Operated by Spouses. File taxes online free   If you and your spouse jointly own and operate a farm as an unincorporated business and share in the profits and losses, you are partners in a partnership whether or not you have a formal partnership agreement. File taxes online free You must file Form 1065, instead of Schedule F, unless you make a joint election to be treated as a qualified joint venture. File taxes online free Making this election will allow you to avoid the complexity of Form 1065 but still give each spouse credit for social security earnings on which retirement benefits are based. File taxes online free Qualified joint venture. File taxes online free   If you and your spouse each materially participate as the only members of a jointly owned and operated farm, and you file a joint tax return for the tax year, you can make a joint election to be treated as a qualified joint venture instead of a partnership for the tax year. File taxes online free For an explanation of “material participation,” see the instructions for Schedule C, line G, and the instructions for Schedule F, line E. File taxes online free   To make this election, you must divide all items of income, gain, loss, deduction, and credit attributable to the business between you and your spouse in accordance with your respective interests in the venture. File taxes online free Each of you must file a separate Schedule F and a separate Schedule SE. File taxes online free For more information, see Qualified Joint Venture in the Instructions for Schedule SE (Form 1040). File taxes online free Spouse employee. File taxes online free   If your spouse is your employee, not your partner, you must withhold and pay social security and Medicare taxes for him or her. File taxes online free For more information about employment taxes, see chapter 13. File taxes online free Community property. File taxes online free   If you are a partner and your distributive share of any income or loss from a trade or business carried on by the partnership is community property, treat your share as your self-employment earnings. File taxes online free Do not treat any of your share as self-employment earnings of your spouse. File taxes online free Figuring Self-Employment Earnings Farmer. File taxes online free   If you are self-employed as a farmer, use Schedule F (Form 1040) to figure your self-employment earnings. File taxes online free Partnership income or loss. File taxes online free   If you are a member of a partnership that carries on a trade or business, the partnership should report your self-employment earnings in box 14, code A, of your Schedule K-1 (Form 1065). File taxes online free Box 14 of Schedule K-1 may also provide amounts for gross farming or fishing income (code B) and gross nonfarm income (code C). File taxes online free Use these amounts if you use the farm or nonfarm optional method to figure net earnings from self-employment (see Methods for Figuring Net Earnings , later). File taxes online free   If you are a general partner, you may need to reduce these reported earnings by amounts you claim as a section 179 deduction, unreimbursed partnership expenses, or depletion on oil and gas properties. File taxes online free   If the amount reported is a loss, include only the deductible amount when you figure your total self-employment earnings. File taxes online free   For more information, see the Partner's Instructions for Schedule K-1 (Form 1065). File taxes online free   For general information on partnerships, see Publication 541. File taxes online free More than one business. File taxes online free   If you have self-employment earnings from more than one trade, business, or profession, you generally must combine the net profit or loss from each to determine your total self-employment earnings. File taxes online free A loss from one business reduces your profit from another business. File taxes online free However, do not combine earnings from farm and nonfarm businesses if you are using one of the optional methods (discussed later) to figure net earnings. File taxes online free Community property. File taxes online free   If any of the income from a farm or business, other than a partnership, is community property under state law, it is included in the self-employment earnings of the spouse carrying on the trade or business. File taxes online free Lost income payments. File taxes online free   Lost income payments received from insurance or other sources for reducing or stopping farming activities are included in self-employment earnings. File taxes online free These include USDA payments to compensate for lost income resulting from reductions in tobacco quotas and allotments. File taxes online free Even if you are not farming when you receive the payment, it is included in self-employment earnings if it relates to your farm business (even though it is temporarily inactive). File taxes online free A connection exists if it is clear the payment would not have been made but for your conduct of your farm business. File taxes online free Gain or loss. File taxes online free   A gain or loss from the disposition of property that is neither stock in trade nor held primarily for sale to customers is not included in self-employment earnings. File taxes online free It does not matter whether the disposition is a sale, exchange, or involuntary conversion. File taxes online free For example, gains or losses from the disposition of the following types of property are not included in self-employment earnings. File taxes online free Investment property. File taxes online free Depreciable property or other fixed assets used in your trade or business. File taxes online free Livestock held for draft, breeding, sport, or dairy purposes, and not held primarily for sale, regardless of how long the livestock was held, or whether it was raised or purchased. File taxes online free Unharvested standing crops sold with land held more than 1 year. File taxes online free Timber, coal, or iron ore held for more than 1 year if an economic interest was retained, such as a right to receive coal royalties. File taxes online free   A gain or loss from the cutting of timber is not included in self-employment earnings if the cutting is treated as a sale or exchange. File taxes online free For more information on electing to treat the cutting of timber as a sale or exchange, see Timber in chapter 8. File taxes online free Wages and salaries. File taxes online free   Wages and salaries received for services performed as an employee and covered by social security or railroad retirement are not included in self-employment earnings. File taxes online free   Wages paid in kind to you for agricultural labor, such as commodity wages, are not included in self-employment earnings. File taxes online free Retired partner. File taxes online free   Retirement income received by a partner from his or her partnership under a written plan is not included in self-employment earnings if all the following apply. File taxes online free The retired partner performs no services for the partnership during the year. File taxes online free The retired partner is owed only the retirement payments. File taxes online free The retired partner's share (if any) of the partnership capital was fully paid to the retired partner. File taxes online free The payments to the retired partner are lifelong periodic payments. File taxes online free Conservation Reserve Program (CRP) payments. File taxes online free   Under the Conservation Reserve Program (CRP), if you own or operate highly erodible or other specified cropland, you may enter into a longterm contract with the USDA, agreeing to convert to a less intensive use of that cropland. File taxes online free You must include the annual rental payments and any onetime incentive payment you receive under the program on Schedule F, lines 4a and 4b. File taxes online free Cost share payments you receive may qualify for the costsharing exclusion. File taxes online free See Cost-Sharing Exclusion (Improvements), above. File taxes online free CRP payments are reported to you on Form 1099G. File taxes online free Individuals who are receiving Social Security retirement or disability benefits may exclude CRP payments when calculating self-employment tax. File taxes online free See the instructions for Schedule SE (Form 1040). File taxes online free Self-employed health insurance deduction. File taxes online free   You cannot deduct the self-employed health insurance deduction you report on Form 1040, line 29, from self-employment earnings on Schedule SE (Form 1040). File taxes online free Landlord Participation in Farming As a general rule, income and deductions from rentals and from personal property leased with real estate are not included in determining self-employment earnings. File taxes online free However, income and deductions from farm rentals, including government commodity program payments received by a landowner who rents land, are included if the rental arrangement provides that the landowner will, and does, materially participate in the production or management of production of the farm products on the land. File taxes online free Crop shares. File taxes online free   Rent paid in the form of crop shares is included in self-employment earnings for the year you sell, exchange, give away, or use the crop shares if you meet one of the four material participation tests (discussed next) at the time the crop shares are produced. File taxes online free Feeding such crop shares to livestock is considered using them. File taxes online free Your gross income for figuring your self-employment earnings includes the fair market value of the crop shares when they are used as feed. File taxes online free Material participation for landlords. File taxes online free   You materially participate if you have an arrangement with your tenant for your participation and you meet one or more of the following tests. File taxes online free You do at least three of the following. File taxes online free Pay, using cash or credit, at least half the direct costs of producing the crop or livestock. File taxes online free Furnish at least half the tools, equipment, and livestock used in the production activities. File taxes online free Advise or consult with your tenant. File taxes online free Inspect the production activities periodically. File taxes online free You regularly and frequently make, or take an important part in making, management decisions substantially contributing to or affecting the success of the enterprise. File taxes online free You work 100 hours or more spread over a period of 5 weeks or more in activities connected with agricultural production. File taxes online free You do things that, considered in their totality, show you are materially and significantly involved in the production of the farm commodities. File taxes online free These tests may be used as general guides for determining whether you are a material participant. File taxes online free Example. File taxes online free Drew Houston agrees to produce a crop on J. File taxes online free Clarke's cotton farm, with each receiving half the proceeds. File taxes online free Clarke advises Houston when to plant, spray, and pick the cotton. File taxes online free During the growing season, Clarke inspects the crop every few days to determine whether Houston is properly taking care of the crop. File taxes online free Houston furnishes all labor needed to grow and harvest the crop. File taxes online free The management decisions made by Clarke in connection with the care of the cotton crop and his regular inspection of the crop establish that he participates to a material degree in the cotton production operations. File taxes online free The income Clarke receives from his cotton farm is included in his self-employment earnings. File taxes online free Methods for Figuring Net Earnings There are three ways to figure your net earnings from self-employment. File taxes online free The regular method. File taxes online free The farm optional method. File taxes online free The nonfarm optional method. File taxes online free You must use the regular method unless you are eligible to use one or both of the optional methods. File taxes online free See Figure 12-1 , shown later. File taxes online free Figure 12-1. File taxes online free Can I Use the Optional Methods? Please click here for the text description of the image. File taxes online free Figure 12–1. File taxes online free Can I Use the Optional Methods? Why use an optional method?   You may want to use the optional methods (discussed later) when you have a loss or a small net profit and any one of the following applies. File taxes online free You want to receive credit for social security benefit coverage. File taxes online free You incurred child or dependent care expenses for which you could claim a credit. File taxes online free (An optional method may increase your earned income, which could increase your credit. File taxes online free ) You are entitled to the earned income credit. File taxes online free (An optional method may increase your earned income, which could increase your credit. File taxes online free ) You are entitled to the additional child tax credit. File taxes online free (An optional method may increase your earned income, which could increase your credit. File taxes online free ) Effects of using an optional method. File taxes online free   Using an optional method could increase your SE tax. File taxes online free Paying more SE tax may result in you getting higher social security disability or retirement benefits. File taxes online free   If you use either or both optional methods, you must figure and pay the SE tax due under these methods even if you would have had a smaller SE tax or no SE tax using the regular method. File taxes online free   The optional methods may be used only to figure your SE tax. File taxes online free To figure your income tax, include your actual self-employment earnings in gross income, regardless of which method you use to determine SE tax. File taxes online free Regular Method Multiply your total self-employment earnings by 92. File taxes online free 35% (. File taxes online free 9235) to get your net earnings under the regular method. File taxes online free See Short Schedule SE, line 4, or Long Schedule SE, line 4a. File taxes online free Net earnings figured using the regular method are also called “actual net earnings. File taxes online free ” Farm Optional Method Use the farm optional method only for self-employment earnings from a farming business. File taxes online free You can use this method if you meet either of the following tests. File taxes online free Your gross farm income is $6,960 or less. File taxes online free Your net farm profits are less than $5,024. File taxes online free Gross farm income. File taxes online free   Your gross farm income is the total of the amounts from: Schedule F (Form 1040), line 9, and Schedule K-1 (Form 1065), box 14, code B (from farm partnerships). File taxes online free Net farm profits. File taxes online free   Net farm profits generally are the total of the amounts from: Schedule F (Form 1040), line 34, and Schedule K-1 (Form 1065), box 14, code A (from farm partnerships). File taxes online free However, you may need to adjust the amount reported on Schedule K-1 if you are a general partner or if it is a loss. File taxes online free For more information, see Partnership income or loss , earlier. File taxes online free Figuring farm net earnings. File taxes online free   If you meet either of the two tests explained above, use Table 12-1. File taxes online free Figuring Farm Net Earnings , to figure your net earnings from self-employment under the farm optional method. File taxes online free Table 12-1. File taxes online free Figuring Farm Net Earnings IF your gross farm income  is. File taxes online free . File taxes online free . File taxes online free THEN your net earnings are equal to. File taxes online free . File taxes online free . File taxes online free $6,960 or less Two-thirds of your gross farm income. File taxes online free More than $6,960 $4,640 Optional method can reduce or eliminate SE tax. File taxes online free   If your gross farm income is $6,960 or less and your farm net earnings figured under the farm optional method are less than your actual net earnings, you can use the farm optional method to reduce or eliminate your SE tax. File taxes online free Your actual net earnings are your net earnings figured using the regular method, explained earlier. File taxes online free Example. File taxes online free Your gross farm income is $540 and your net farm profit is $460. File taxes online free Consequently, your net earnings figured under the farm optional method are $360 (2/3 of $540) and your actual net earnings are $425 (92. File taxes online free 35% of $460). File taxes online free You owe no SE tax if you use the optional method because your net earnings under the farm optional method are less than $400. File taxes online free Nonfarm Optional Method This is an optional method available for determining net earnings from nonfarm self-employment, much like the farm optional method. File taxes online free If you are also engaged in a nonfarm business, you may be able to use this method to figure your nonfarm net earnings. File taxes online free You can use this method even if you do not use the farm optional method for determining your farm net earnings and even if you have a net loss from your nonfarm business. File taxes online free For more information about the nonfarm optional method, see Publication 334. File taxes online free You cannot combine farm and nonfarm self-employment earnings to figure your net earnings under either of the optional methods. File taxes online free Using Both Optional Methods If you use both optional methods, you must add the net earnings figured under each method to arrive at your total net earnings from self-employment. File taxes online free You can report less than your total actual farm and nonfarm net earnings but not less than actual nonfarm net earnings. File taxes online free If you use both optional methods, you can report no more than $4,640 as your combined net earnings from self-employment. File taxes online free Reporting Self-Employment Tax Use Schedule SE (Form 1040) to figure and report your SE tax. File taxes online free Then, enter the SE tax on line 56 of Form 1040 and attach Schedule SE to Form 1040. File taxes online free Most taxpayers can use Section A–Short Schedule SE to figure their SE tax. File taxes online free However, certain taxpayers must use Section B–Long Schedule SE. File taxes online free Use the chart on page 1 of Schedule SE to find out which one to use. File taxes online free If you have to pay SE tax, you must file Form 1040 (with Schedule SE attached) even if you do not otherwise have to file a federal income tax return. File taxes online free Deduction for employer-equivalent portion of self-employment tax. File taxes online free   You can deduct the employer-equivalent portion of your SE tax in figuring your adjusted gross income. File taxes online free This deduction only affects your income tax. File taxes online free It does not affect either your net earnings from self-employment or your SE tax. File taxes online free   To deduct the tax, enter on Form 1040, line 27, the amount shown on Section A, Line 6, or Section B, line 13, Deduction for employer-equivalent portion of self-employment tax, of the Schedule SE. File taxes online free Joint return. File taxes online free   Even if you file a joint return, you cannot file a joint Schedule SE. File taxes online free This is true whether one spouse or both spouses have self-employment earnings. File taxes online free Your spouse is not considered self-employed just because you are. File taxes online free If both of you have self-employment earnings, each of you must complete a separate Schedule SE. File taxes online free However, if one spouse uses the Short Schedule SE and the other spouse has to use the Long Schedule SE, both can use the same form. File taxes online free Attach both schedules to the joint return. File taxes online free If you and your spouse operate a business as a partnership, see Business Owned and Operated by Spouses and Qualified joint venture , earlier, under Who Must Pay Self-Employment Tax . File taxes online free Prev  Up  Next   Home   More Online Publications
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