Self-Employment Tax and Married Couples
If each spouse earns self-employment income:
- Each spouse must prepare his/her own Schedule SE.
- Each spouse must pay his/her own self-employment tax.
- Each spouse includes his/her own social security number (or employer identification number (EIN) if required) on his/her separate Schedule SE.
- Each spouse's Schedule SE is attached to the joint return (Form 1040) along with each Schedule C.
- Note: Remember, only one (1) Schedule SE is prepared by each spouse, regardless of how many Schedule Cs are filed.
Community Property States
For self-employment tax purposes, business income is not treated as community property.
The spouse actually carrying on the business is subject to self-employment tax.
Community property states include:
- New Mexico
Retirees and Self-Employment Tax
If you're retired and collecting social security benefits you must still pay self-employment tax on self-employment income.
Self-Employment Tax: Business Interruption Insurance Proceeds