Schedule SE

Schedule SE, or Self-Employment Tax, is a form used by individuals who earn income from self-employment, such as freelancers or business owners. It calculates the amount of Social Security and Medicare taxes they owe on their net earnings. Essentially, self-employed individuals need to pay these taxes because they are not automatically withheld from their income like they are for traditional employees. Completing Schedule SE helps ensure that self-employed individuals contribute to these social insurance programs, which provide benefits like retirement and healthcare coverage. This form is filed with the individual's annual income tax return.