Get Schedule E Tax Form

If the total of your net earnings from self-employment from all businesses is $400 or more, use Schedule SE (Form 1040), Self-Employment Tax to figure your self-employment income and tax owed.

Who needs to file Schedule SE? If you made $400 or more this year in self-employment income, you must report your self-employment income to the IRS using Schedule SE. Exception: File if church employee income is $108.28 or more.

If you are self-employed, it's likely you need to fill out an IRS Schedule C to report how much money you made or lost in your business.

Even if you had a loss or a small amount of income from self-employment, it may be to your benefit to file Schedule SE and use either "optional method" in the instruc- tions for Part II of Schedule SE (dis- cussed later). You must pay SE tax if you had net earnings of $400 or more as a self-em- ployed person.

A Schedule E does not only report income. You might use it to report a net loss from your particular business activity. Generally, when you engage in an activity for profit, the IRS limits your deductible loss to the amount you are “at-risk” for.

Schedule E is the form you use to report supplemental income you earn from any of the following sources: renting real estate; royalties; interests in partnerships and S corporations; and distributions received from an estate or trust as well as from certain mortgage investments.

You only pay self employment tax on a Net Profit of $400 or more. And a loss will be deducted from your other income. But Some expenses, such as home office or section 179 depreciation can only be used to reduce your schedule C taxable income to zero, and not to create a loss.

Schedule 1 (Form 1040) Additional Income and Adjustments to Income. Have additional income, such as unemployment compensation, prize or award money, gambling winnings. Have any deductions to claim, such as student loan interest deduction, self-employment tax, educator expenses.