Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Self-Employment Tax Form 1040-SS

Self-Employment Tax

Methods for Computing Self-Employment Tax (continued)

Case Study

Remember that the net earnings from Alyssa's grocery store are $60,674.

Compute Alyssa's self-employment tax using these formulas:

  • Net earnings x .124 = Social Security tax
  • Net earnings x .029 = Medicare tax
  • Social Security tax + Medicare tax = Self-employment tax
Alyssa