Contents
Introduction ........................................................
1
General Information ...........................................
2
Who Must Pay Self-Employment Tax ..............
3
Self-Employment Income ..................................
6
Figuring Self-Employment Tax .........................
7
Reporting Self-Employment Tax ......................
12
How To Get More Information ..........................
13
Index ....................................................................
17
Important Changes
Photographs of missing children. The Internal Rev-
enue Service is a proud partner with the National Cen-
ter for Missing and Exploited Children. Photographs of
missing children selected by the Center may appear in
this publication on pages that would otherwise be blank.
You can help bring these children home by looking at
the
photographs
and
calling
1–800–THE–LOST
(1–800–843–5678) if you recognize a child.
Tax rates and maximum net earnings for self-
employment taxes.
The self-employment tax rate on
net earnings remains the same for tax year 1999 and
2000. This rate, 15.3%, is a total of 12.4% for social
security (old-age, survivors, and disability insurance)
and 2.9% for Medicare (hospital insurance).
The maximum amount subject to the social security
part for tax years beginning in 1999 is $72,600. For
2000, that amount increases to $76,200. All your net
earnings of at least $400 are subject to the Medicare
tax.
Introduction
The self-employment tax is a social security and Medi-
care tax for individuals who work for themselves. It is
similar to the social security and Medicare taxes with-
held from the pay of wage earners.
This publication explains the following topics.
• What income is subject to self-employment tax.
• Who must pay self-employment tax.
• How to figure self-employment tax.
• How to report self-employment tax.
You usually have to pay self-employment tax if you
are self-employed or are a church employee. You have
Department of the Treasury
Internal Revenue Service
Publication 533
Cat. No. 15063D
Self-
Employment
Tax
For use in preparing
1999 Returns
