Filled-In Form Examples

The following examples illustrate the use of the short and long forms of Schedule SE (Form 1040).

Short Schedule SE Example

The following example shows how Susan J. Brown fills out Section A-Short Schedule SE.

Background

Susan J. Brown is the sole proprietor of a dress shop, "Milady Fashions." She received no wages and she does not own any other business. Her husband has no interest in her business. Her Schedule C (Form 1040) shows a net profit of $35,100 in 2001.

Completing Schedule SE

Susan's completed Schedule SE with Short Schedule SE filled out is shown later.

The following table describes how Susan completes each line on her schedule.

Table 8. Completing Short Schedule SE

Schedule SE, page 1

If Susan Owned More Than One Business

If Susan were the sole proprietor of more than one business, she would have combined the profits and losses from all of them and completed a single Schedule SE.

If Susan Earned Wages

If, in addition to operating her dress shop, she had worked for wages and the total of her wages and her SE income was more than $80,400, she would have filled out Long Schedule SE.

If Susan's Husband Had Income from Self-Employment

Susan's husband has no interest in her business and does not pay SE tax on this income. If her husband was a partner in the business or had other income subject to SE tax, he would file a separate Schedule SE.

Long Schedule SE Example

The following example illustrates how John Clarke fills out Section B-Long Schedule SE.

Background

John Clarke is single. He is employed as a full-time history professor at a local university. His wages from this job were $74,000. John also gives lectures around the country on a freelance basis. His net profit from these lectures was $15,000, which he reported on Schedule C-EZ (Form 1040), (not shown).

Because his net profit from lecturing and his wages total more than $80,400, he must fill out Long Schedule SE.

Completing Schedule SE

John only needs to complete Part I of Long Schedule SE since he is not using an optional method.

John's completed Long Schedule SE is shown later.

The following table describes how John completes each line.

Table 9. Completing Long Schedule SE

Schedule SE, page 2

Previous| First | Next

Publication Index | IRS-Forms Main | Home