This form is use to calculate and report the tax owed on net earnings from self-employment. Self-employment tax covers Social Security and Medicare taxes that are typically withheld from an employee's paycheck.
- Part I — Self-Employment Tax: Here, we'll calculate your self-employment tax and deductible part of self-employment tax.
- Part II — Optional Methods To Figure Net Earnings: This part provides two optional methods to calculate your net earnings, one for farm income and another for nonfarm income. These methods may be used under specific circumstances, such as if your income was not more than a certain amount or your profits were less than a specified amount.