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Amend Your Taxes

Amend your taxes 5. Amend your taxes   Credits Table of Contents Credit for the Elderly or the DisabledCan You Take the Credit? Figuring the Credit Child and Dependent Care Credit Earned Income Credit (EIC)Do You Qualify for the Earned Income Credit (EIC)? Figuring the EIC This chapter briefly discusses the credit for the elderly or disabled, the child and dependent care credit, and the earned income credit. Amend your taxes You may be able to reduce your federal income tax by claiming one or more of these credits. Amend your taxes Credit for the Elderly or the Disabled This section explains who qualifies for the credit for the elderly or the disabled and how to figure this credit. Amend your taxes For more information, see Publication 524, Credit for the Elderly or the Disabled. Amend your taxes You can take the credit only if you file Form 1040 or Form 1040A. Amend your taxes You cannot take the credit if you file Form 1040EZ or Form 1040NR. Amend your taxes Can You Take the Credit? You can take the credit for the elderly or the disabled if you meet both of the following requirements. Amend your taxes You are a qualified individual. Amend your taxes Your income is not more than certain limits. Amend your taxes  You can use Figure 5-A and Figure 5-B as guides to see if you are eligible for the credit. Amend your taxes   Qualified Individual You are a qualified individual for this credit if you are a U. Amend your taxes S. Amend your taxes citizen or resident alien, and either of the following applies. Amend your taxes You were age 65 or older at the end of 2013. Amend your taxes You were under age 65 at the end of 2013 and all three of the following statements are true. Amend your taxes You retired on permanent and total disability (explained later). Amend your taxes You received taxable disability income for 2013. Amend your taxes On January 1, 2013, you had not reached mandatory retirement age (defined later under Disability income ). Amend your taxes Age 65. Amend your taxes You are considered to be age 65 on the day before your 65th birthday. Amend your taxes Therefore, you are considered to be age 65 at the end of 2013 if you were born before January 2, 1949. Amend your taxes Figure 5-A. Amend your taxes Are You a Qualified Individual? This image is too large to be displayed in the current screen. Amend your taxes Please click the link to view the image. Amend your taxes Figure 5-A, Are you a qualified individual? U. Amend your taxes S. Amend your taxes citizen or resident alien. Amend your taxes   You must be a U. Amend your taxes S. Amend your taxes citizen or resident alien (or be treated as a resident alien) to take the credit. Amend your taxes Generally, you cannot take the credit if you were a nonresident alien at any time during the tax year. Amend your taxes Exceptions. Amend your taxes   You may be able to take the credit if you are a nonresident alien who is married to a U. Amend your taxes S. Amend your taxes citizen or resident alien at the end of the tax year and you and your spouse choose to treat you as a U. Amend your taxes S. Amend your taxes resident alien. Amend your taxes If you make that choice, both you and your spouse are taxed on your worldwide income. Amend your taxes   If you were a nonresident alien at the beginning of the year and a resident alien at the end of the year, and you were married to a U. Amend your taxes S. Amend your taxes citizen or resident alien at the end of the year, you may be able to choose to be treated as a U. Amend your taxes S. Amend your taxes resident alien for the entire year. Amend your taxes In that case, you may be allowed to take the credit. Amend your taxes   For information on these choices, see chapter 1 of Publication 519, U. Amend your taxes S. Amend your taxes Tax Guide for Aliens. Amend your taxes Married persons. Amend your taxes   Generally, if you are married at the end of the tax year, you and your spouse must file a joint return to take the credit. Amend your taxes However, if you and your spouse did not live in the same household at any time during the tax year, you can file either a joint return or separate returns and still take the credit. Amend your taxes Head of household. Amend your taxes   You can file as head of household and qualify to take the credit even if your spouse lived with you during the first 6 months of the year if you meet certain tests. Amend your taxes See Publication 524 and Publication 501. Amend your taxes Under age 65. Amend your taxes   If you are under age 65 at the end of 2013, you can qualify for the credit only if you are retired on permanent and total disability and have taxable disability income (discussed later under Disability income ). Amend your taxes You are considered to be under age 65 at the end of 2013 if you were born after January 1, 1949. Amend your taxes You are retired on permanent and total disability if: You were permanently and totally disabled when you retired, and You retired on disability before the end of the tax year. Amend your taxes   Even if you do not retire formally, you may be considered retired on disability when you have stopped working because of your disability. Amend your taxes If you retired on disability before 1977 and were not permanently and totally disabled at the time, you can qualify for the credit if you were permanently and totally disabled on January 1, 1976, or January 1, 1977. Amend your taxes Permanent and total disability. Amend your taxes   You are permanently and totally disabled if you cannot engage in any substantial gainful activity because of your physical or mental condition. Amend your taxes A physician must certify that the condition has lasted or can be expected to last continuously for 12 months or more, or that the condition can be expected to result in death. Amend your taxes See Physician's statement , later. Amend your taxes Substantial gainful activity. Amend your taxes   Substantial gainful activity is the performance of significant duties over a reasonable period of time while working for pay or profit, or in work generally done for pay or profit. Amend your taxes   Full-time work (or part-time work done at the employer's convenience) in a competitive work situation for at least the minimum wage conclusively shows that you are able to engage in substantial gainful activity. Amend your taxes   Substantial gainful activity is not work you do to take care of yourself or your home. Amend your taxes It is not unpaid work on hobbies, institutional therapy or training, school attendance, clubs, social programs, and similar activities. Amend your taxes However, doing this kind of work may show that you are able to engage in substantial gainful activity. Amend your taxes    Figure 5-B. Amend your taxes Income Limits IF your filing status is. Amend your taxes . Amend your taxes . Amend your taxes THEN even if you qualify (see Figure 5-A), you CANNOT take the credit if: Your adjusted gross income (AGI)* is equal to or more than. Amend your taxes . Amend your taxes . Amend your taxes OR the total of your nontaxable social security and other nontaxable pension(s), annuities, or disability income is equal to or more than. Amend your taxes . Amend your taxes . Amend your taxes single, head of household, or qualifying widow(er) with dependent child $17,500 $5,000 married filing jointly and only one spouse qualifies in Figure 5-A $20,000 $5,000 married filing jointly and both spouses qualify in Figure 5-A $25,000 $7,500 married filing separately and you lived apart from your spouse for all of 2013 $12,500 $3,750 *AGI is the amount on Form 1040A, line 22, or Form 1040, line 38      The fact that you have not worked for some time is not, of itself, conclusive evidence that you cannot engage in substantial gainful activity. Amend your taxes Physician's statement. Amend your taxes   If you are under age 65, you must have your physician complete a statement certifying that you were permanently and totally disabled on the date you retired. Amend your taxes   You do not have to file this statement with your tax return, but you must keep it for your records. Amend your taxes The Instructions for Schedule R (Form 1040A or 1040) include a statement your physician can complete and that you can keep for your records. Amend your taxes Veterans. Amend your taxes   If the Department of Veterans Affairs (VA) certifies that you are permanently and totally disabled, you can substitute VA Form 21-0172, Certification of Permanent and Total Disability, for the physician's statement you are required to keep. Amend your taxes VA Form 21-0172 must be signed by a person authorized by the VA to do so. Amend your taxes You can get this form from your local VA regional office. Amend your taxes Physician's statement obtained in earlier year. Amend your taxes   If you got a physician's statement in an earlier year and, due to your continued disabled condition, you were unable to engage in any substantial gainful activity during 2013, you may not need to get another physician's statement for 2013. Amend your taxes For a detailed explanation of the conditions you must meet, see the instructions for Schedule R (Form 1040A or 1040), Part II. Amend your taxes If you meet the required conditions, you must check the box on Schedule R (Form 1040A or 1040), Part II, line 2. Amend your taxes   If you checked Schedule R (Form 1040A or 1040), Part I, box 4, 5, or 6, print in the space above the box in Part II, line 2, the first name(s) of the spouse(s) for whom the box is checked. Amend your taxes Disability income. Amend your taxes   If you are under age 65, you must also have taxable disability income to qualify for the credit. Amend your taxes   Disability income must meet the following two requirements. Amend your taxes It must be paid under your employer's accident or health plan or pension plan. Amend your taxes It must be included in your income as wages (or payments in lieu of wages) for the time you are absent from work because of permanent and total disability. Amend your taxes Payments that are not disability income. Amend your taxes   Any payment you receive from a plan that does not provide for disability retirement is not disability income. Amend your taxes Any lump-sum payment for accrued annual leave that you receive when you retire on disability is a salary payment and is not disability income. Amend your taxes   For purposes of the credit for the elderly or the disabled, disability income does not include amounts you receive after you reach mandatory retirement age. Amend your taxes Mandatory retirement age is the age set by your employer at which you would have had to retire had you not become disabled. Amend your taxes Figuring the Credit You can figure the credit yourself, or the IRS will figure it for you. Amend your taxes Figuring the credit yourself. Amend your taxes   If you figure the credit yourself, fill out the front of Schedule R (Form 1040A or 1040). Amend your taxes Next, fill out Schedule R (Form 1040A or 1040), Part III. Amend your taxes Credit figured for you. Amend your taxes   If you can take the credit and you want the IRS to figure the credit for you, see Publication 524 or the Instructions for Schedule R (Form 1040A or 1040). Amend your taxes If you want the IRS to figure your tax, see chapter 30 of Publication 17, Your Federal Income Tax. Amend your taxes Child and Dependent Care Credit You may be able to claim this credit if you pay someone to care for your dependent who is under age 13 or for your spouse or dependent who is not able to care for himself or herself. Amend your taxes The credit can be up to 35% of your expenses. Amend your taxes To qualify, you must pay these expenses so you can work or look for work. Amend your taxes If you claim this credit, you must include on your return the name and taxpayer identification number (generally the social security number) of each qualifying person for whom care is provided. Amend your taxes If the correct information is not shown, the credit may be reduced or disallowed. Amend your taxes You also must show on your return the name, address, and the taxpayer identification number of the person(s) or organization(s) that provided the care. Amend your taxes For more information, see Publication 503, Child and Dependent Care Expenses. Amend your taxes Earned Income Credit (EIC) The earned income credit (EIC) is a refundable tax credit for certain people who work and have earned income under $51,567. Amend your taxes The EIC is available to persons with or without a qualifying child. Amend your taxes Credit has no effect on certain welfare benefits. Amend your taxes   Any refund you receive because of the EIC cannot be counted as income when determining whether you or anyone else is eligible for benefits or assistance, or how much you or anyone else can receive, under any federal program or under any state or local program financed in whole or in part with federal funds. Amend your taxes These programs include the following. Amend your taxes Medicaid and supplemental security income (SSI). Amend your taxes Supplemental Nutrition Assistance Program (food stamps). Amend your taxes Low-income housing. Amend your taxes Temporary Assistance for Needy Families (TANF). Amend your taxes  In addition, when determining eligibility, the refund cannot be counted as a resource for at least 12 months after you receive it. Amend your taxes Check with your local benefit coordinator to find out if your refund will affect your benefits. Amend your taxes Do You Qualify for the Earned Income Credit (EIC)? Use Table 5-1 as an initial guide to the rules you must meet in order to qualify for the EIC. Amend your taxes The specific rules you must meet depend on whether you have a qualifying child. Amend your taxes If you have a qualifying child, the rules in Parts A, B, and D apply to you. Amend your taxes If you do not have a qualifying child, the rules in Parts A, C, and D apply to you. Amend your taxes  If, after reading all the rules in each part that applies to you, you think you may qualify for the credit, see Publication 596, Earned Income Credit, for more details about the EIC. Amend your taxes You can also find information about the EIC in the instructions for Form 1040 (line 64a), Form 1040A (line 38a), or Form 1040EZ (line 8a). Amend your taxes The sections that follow provide additional information for some of the rules. Amend your taxes Adjusted gross income (AGI). Amend your taxes   Under Rule 1, you cannot claim the EIC unless your AGI is less than the applicable limit shown in Part A of Table 5-1. Amend your taxes Your AGI is the amount on line 37 (Form 1040), line 21 (Form 1040A), or line 4 (Form 1040EZ). Amend your taxes Table 5-1. Amend your taxes Earned Income Credit (EIC) in a Nutshell First, you must meet all the rules in this column. Amend your taxes Second, you must meet all the rules in one of these columns, whichever applies. Amend your taxes Third, you must meet the rule in this column. Amend your taxes Part A. Amend your taxes  Rules for Everyone Part B. Amend your taxes  Rules If You Have a Qualifying Child Part C. Amend your taxes  Rules If You Do Not Have a Qualifying Child Part D. Amend your taxes  Figuring and Claiming the EIC 1. Amend your taxes Your adjusted gross income (AGI) must be less than: •$46,227 ($51,567 for married filing jointly) if you have three or more qualifying children, •$43,038 ($48,378 for married filing jointly) if you have two qualifying children, •$37,870 ($43,210 for married filing jointly) if you have one qualifying child, or  •$14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. Amend your taxes 2. Amend your taxes You must have a valid social security number. Amend your taxes  3. Amend your taxes Your filing status cannot be “Married filing separately. Amend your taxes ” 4. Amend your taxes You must be a U. Amend your taxes S. Amend your taxes citizen or resident alien all year. Amend your taxes  5. Amend your taxes You cannot file Form 2555 or Form 2555-EZ (relating to foreign earned income). Amend your taxes  6. Amend your taxes Your investment income must be $3,300 or less. Amend your taxes  7. Amend your taxes You must have earned income. Amend your taxes 8. Amend your taxes Your child must meet the relationship, age, residency, and joint return tests. Amend your taxes  9. Amend your taxes Your qualifying child cannot be used by more than one person to claim the EIC. Amend your taxes  10. Amend your taxes You generally cannot be a qualifying child of another person. Amend your taxes 11. Amend your taxes You must be at least age 25 but under age 65. Amend your taxes  12. Amend your taxes You cannot be the dependent of another person. Amend your taxes  13. Amend your taxes You generally cannot be a qualifying child of another person. Amend your taxes  14. Amend your taxes You must have lived in the United States more than half of the year. Amend your taxes 15. Amend your taxes Your earned income must be less than: •$46,227 ($51,567 for married filing jointly) if you have three or more qualifying children, •$43,038 ($48,378 for married filing jointly) if you have two qualifying children, •$37,870 ($43,210 for married filing jointly) if you have one qualifying child, or •$14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. Amend your taxes Social security number. Amend your taxes   Under Rule 2, you (and your spouse if you are married filing jointly) must have a valid social security number (SSN) issued by the Social Security Administration (SSA). Amend your taxes Any qualifying child listed on Schedule EIC also must have a valid SSN. Amend your taxes (See Qualifying child , later, if you have a qualifying child. Amend your taxes )   If your social security card (or your spouse's if you are married filing jointly) says “Not valid for employment” and your SSN was issued so that you (or your spouse) could get a federally funded benefit, you cannot get the EIC. Amend your taxes An example of a federally funded benefit is Medicaid. Amend your taxes Investment income. Amend your taxes   Under Rule 6, you cannot claim the EIC unless your investment income is $3,300 or less. Amend your taxes If your investment income is more than $3,300, you cannot claim the credit. Amend your taxes For most people, investment income is the total of the following amounts. Amend your taxes Taxable interest (line 8a of Form 1040 or 1040A). Amend your taxes Tax-exempt interest (line 8b of Form 1040 or 1040A). Amend your taxes Dividend income (line 9a of Form 1040 or 1040A). Amend your taxes Capital gain net income (line 13 of Form 1040, if more than zero, or line 10 of Form 1040A). Amend your taxes  If you file Form 1040EZ, your investment income is the total of the amount of line 2 and the amount of any tax-exempt interest you wrote to the right of the words “Form 1040EZ” on line 2. Amend your taxes   For more information about investment income, see Publication 596, Earned Income Credit. Amend your taxes Earned income. Amend your taxes   Under Rule 7, you must have earned income to claim the EIC. Amend your taxes Under Rule 15, you cannot claim the EIC unless your earned income is less than the applicable limit shown in Table 5-1, Part D. Amend your taxes Earned income includes all of the following types of income. Amend your taxes Wages, salaries, tips, and other taxable employee pay. Amend your taxes Employee pay is earned income only if it is taxable. Amend your taxes Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. Amend your taxes But there is an exception for nontaxable combat pay, which you can choose to include in earned income. Amend your taxes Net earnings from self-employment. Amend your taxes Gross income received as a statutory employee. Amend your taxes Gross income defined. Amend your taxes   Gross income means all income you received in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). Amend your taxes Do not include any social security benefits unless (a) you are married filing a separate tax return and you lived with your spouse at any time in 2013, or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). Amend your taxes If (a) or (b) applies, see the instructions for Form 1040, lines 20a and 20b to figure the taxable part of social security benefits you must include in gross income. Amend your taxes Self-employed persons. Amend your taxes   If you are self-employed and your net earnings are $400 or more, be sure to correctly fill out Schedule SE (Form 1040), Self-Employment Tax, and pay the proper amount of self-employment tax. Amend your taxes If you do not, you may not get all the credit to which you are entitled. Amend your taxes Disability benefits. Amend your taxes   If you retired on disability, taxable benefits you receive under your employer's disability retirement plan are considered earned income until you reach minimum retirement age. Amend your taxes Minimum retirement age generally is the earliest age at which you could have received a pension or annuity if you were not disabled. Amend your taxes Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension and are not considered earned income. Amend your taxes   Payments you received from a disability insurance policy that you paid the premiums for are not earned income. Amend your taxes It does not matter whether you have reached minimum retirement age. Amend your taxes If this policy is through your employer, the amount may be shown in box 12 of your Form W-2 with code J. Amend your taxes Income that is not earned income. Amend your taxes   Examples of items that are not earned income under Rule 7 include interest and dividends, pensions and annuities, social security and railroad retirement benefits (including disability benefits — except for payments covered under Disability benefits earlier), alimony and child support, welfare benefits, workers' compensation benefits, unemployment compensation (insurance), nontaxable foster care payments, and veterans' benefits, including VA rehabilitation payments. Amend your taxes Do not include any of these items in your earned income. Amend your taxes Workfare payments. Amend your taxes   Nontaxable workfare payments are not earned income for the EIC. Amend your taxes These are cash payments certain people receive from a state or local agency that administers public assistance programs funded under the federal Temporary Assistance for Needy Families (TANF) program in return for certain work activities such as (1) work experience activities (including remodeling or repairing public housing) if sufficient private sector employment is not available, or (2) community service program activities. Amend your taxes Qualifying child. Amend your taxes   Under Rule 8, your child is a qualifying child if your child meets four tests. Amend your taxes The four tests are: Relationship, Age, Residency, and Joint return. Amend your taxes   The four tests are illustrated in Figure 5-C. Amend your taxes See Publication 596 for more information about each test. Amend your taxes Figure 5-C. Amend your taxes Tests for Qualifying Child A qualifying child for the EIC is a child who is your. Amend your taxes . Amend your taxes . Amend your taxes Son, daughter, stepchild, foster child,  or a descendant of any of them (for example, your grandchild) OR Brother, sister, half brother, half sister, stepbrother,  stepsister, or a descendant of any of them (for example, your  niece or nephew) was . Amend your taxes . Amend your taxes . Amend your taxes Under age 19 at the end of 2013 and younger than you (or your spouse if filing jointly) OR Under age 24 at the end of 2013, a student, and younger than you (or your spouse if filing jointly) OR Permanently and totally disabled at any time during the year, regardless of age who. Amend your taxes . Amend your taxes . Amend your taxes Is not filing a joint return for 2013  (or is filing a joint return for 2013 only as a claim for refund of income tax withheld or estimated tax paid) who. Amend your taxes . Amend your taxes . Amend your taxes Lived with you in the United States for more than half of 2013. Amend your taxes  If the child did not live with you for the required time, see Publication 596 for more information. Amend your taxes Figuring the EIC To figure the amount of your credit, you have two choices. Amend your taxes Have the IRS figure the EIC for you. Amend your taxes If you want to do this, see IRS Will Figure the EIC for You in Publication 596. Amend your taxes Figure the EIC yourself. Amend your taxes If you want to do this, see How To Figure the EIC Yourself in Publication 596. Amend your taxes Prev  Up  Next   Home   More Online Publications
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Employment-Related Identity Theft

If you have experienced one of the following, this may be an indication your Social Security number or other personal information may have been used by another person without your permission for employment purposes.    

  1. You received a letter 4491C from the Internal Revenue Service stating that you were the victim of employment related identity theft or
  2. You received a notice from the Internal Revenue Service stating that you received wages that you did not earn or
  3. You receive a Form W-2 or 1099 from an employer for whom you did not work or
  4. You receive your annual “Notice of Earnings” statement from the Social Security Administration and the income showing on the statement is more than you have earned or
  5. Your Social Security benefits have been adjusted/denied because of wages that you did not earn

What you should do:

  • Contact the IRS at the number or fax listed on the letter or notice if you received an IRS letter or notice.
  • Contact the Social Security Administration if you received a Form W-2 from an unknown employer, your “Annual Notice of Earnings” from the Social Security Administration shows more wages than you earned or you had your Social Security benefits adjusted/denied. They will review your earnings with you to ensure their records are correct.
  • Review earnings posted to your record on your Social Security Statement. Workers, age 18 and older, may create an account to get their Statement

Additional steps you should take if you suspect that you are the victim of employment related identity theft

  • File a report with your local police department. 
  • Place a fraud alert on your credit reports by contacting any one of the three nationwide credit reporting companies: 

                        Equifax: 800-525-6285  www.equifax.com

                        Experian: 888-397-3742  www.experian.com

                        Trans Union: 800-916-8800  www.transunion.com

                            Federal Trade Commission
                            600 Pennsylvania Avenue NW
                            Washington, DC  20580  

  • Contact any banks or other financial institutions to close any accounts that are unused, have been tampered with or opened without your permission. 
  • If you have information about the identity thief that impacted your personal information negatively, file an online complaint with the Internet Crime Complaint Center (IC3). The IC3 gives victims of cyber-crime a convenient and easy-to-use reporting mechanism that alerts authorities of suspected criminal or civil violations. IC3 sends every complaint to one or more law enforcement or regulatory agencies that have jurisdiction over the matter.

If you are unable to file your tax return because another person has already filed a return under your SSN

  • You are encouraged to contact the IRS at the Identity Theft Specialized Unit (IPSU), toll free at 1-800-908-4490 so we can take steps to further secure your compromised tax account.  Assistors in this unit are specially trained in Identity Theft issues. 
  • Complete Form 14039  or Form 14039SP (Española) to report the identity theft incident, and have an identity theft indicator placed on your account to allow IRS to take protective actions.  

The IPSU hours of Operation:  Monday – Friday 7 a.m. – 7 p.m. your local time (Alaska & Hawaii follow Pacific Time)

For Additional Information

Page Last Reviewed or Updated: 07-Jan-2014

The Amend Your Taxes

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