Reporting Self-Employment Tax Use Schedule SE (Form 1040) to report and figure your SE tax. Thenenter the SE tax on line 50 of Form 1040, and attach Schedule SE toForm 1040. Most taxpayers can use five star hotel in SopotERROR MSGShort Schedule SE (Section A) tofigure their SE tax. However, certain taxpayers must use LongSchedule SE (Section B). Use the chart on page 1 of Schedule SE(reproduced on page 14) to find out which one to use. TaxTip: Even if you do not have to file Schedule SE, it may be to yourbenefit to file it and use either optional method in Part II ofSection B. Caution: If you have to pay SE tax, you must file a Form 1040 (with ScheduleSE attached) even if you do not otherwise have to file a federalincome tax return. Joint return.If you file a joint return you cannot file a joint Schedule SE(Form 1040). This is true whether one spouse or both spouses have SEincome. If both of you have SE income, each of you must complete aseparate Schedule SE (Form 1040). Attach both schedules to the jointreturn. If you and your spouse operate a business as a partnership,see Husband and wife partners, earlier, underPartners. Community income.hotels BernIf any of the income from a trade or business other than apartnership is community income under state law, it is subject to SEtax as the income of the spouse carrying on the trade or business. Theidentity of the spouse carrying on the trade or business is determinedby the facts in each case. If you are a partner and your distributive share of any income orloss from a trade or business carried on by the partnership iscommunity income, treat your share as your net self-employment income.Do not treat any of your share as net self-employment income of yourspouse. Example Illustrating Schedule SE Susan J. Brown is sole proprietor of a dress shop, "MiladyFashions." Her Schedule C (Form 1040) shows a net profit of $35,100in 1999. She received no wages. Her completed Schedule SE (Form 1040)with Short Schedule SE filled out is shown on page 14. (If Susan were the sole proprietor of more than one business, shewould have combined the profits and losses from all of them andcompleted only one Schedule SE. If, in addition to operating her dressshop, she had worked for wages and the total of her wages and her SEincome was more than $72,600, she would have filled out LongSchedule SE.) Susan's Schedule SE does not have her husband's name on it. Becauseher husband has no interest in her business, he does not pay SE tax onthis income. If her husband has SE income of his own, he will file aseparate Schedule SE. The line numbers shown below in bold type refer to the line numberson the filled-in Short Schedule SE on page 14. Line 1.ERROR MSGSince Susan has no farm income, she leaves line 1 blank. Line 2.Susan enters the net profit from her Schedule C, $35,100. Line 3.Since Susan has no farm income, she enters the same amount on line3. Line 4.Gran hotel EnnisSusan multiplies the $35,100 by 0.9235 to get her net earnings andenters $32,414.85. Line 5.Susan now figures her SE tax. She multiplies the $32,414.85 on line4 by the tax rate (15.3%) on line 5. She enters the result, $4,959.47,on line 5. This is the SE tax she owes. She also enters the amount online 50 of Form 1040 (not illustrated). Line 6.She multiplies $4,959.47 on line 5 by 0.50. She enters $2,479.74here and on Form 1040, line 27. Schedule SE, page 1 Schedule SE, page 2