- 1). Download the Form SE 1040 from the Internal Revenue Service (IRS) website. Print a copy and complete the required sections. Print a copy of the instructions for the form as well (See References).
- 2). Read page one and follow the directions to determine which form to use. It will be the Short Schedule or the Long Schedule, depending on your situation.
- 3). Add all earnings from your self-employment ventures. This may be farming, as shown on your Schedule F. Enter the total on the appropriate Line 1. Also include any Social Security benefits on the following line.
- 4). Place net earnings or losses shown on your Schedule C if you have on Line 2. Add lines 1 through 2 together and place the total on Line 3.
- 5). Multiply the total on Line 3 by .9235. This is the number that goes in Line 4 showing your net earnings from self-employment.
- 6). Follow the instructions on Line 5 and multiply the number on Line 4 by the corresponding amount. For instance, earnings of $106,800 or less are multiplied by .153.
- 7). Multiply Line 5 by .50 to get the deductions amount on Line 6. This is equal to one-half of your self-employment tax.
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