Self-Employment Tax and Married Couples

If each spouse earns self-employment income:

  • Each spouse must prepare his own Schedule SE.
  • Each spouse must pay his own self-employment tax.
  • Each spouse includes his own social security number (or employer identification number (EIN) if required) on his 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:

  • Arizona
  • California
  • Idaho
  • Louisiana
  • Nevada
  • New Mexico
  • Texas
  • Washington
  • Wisconsin

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.

File your personal and small business taxes (Schedule C)