Schedule SE draft-form caveat: this is not a filled IRS form and not a filed return. The result is after SE tax only. It is not income tax and it is not what you keep. On $60,000 of net profit the 92.35% net-earnings base is $55,410.00. Social Security is $6,870.84, Medicare is $1,606.89, and self-employment tax is $8,477.73. Half of that, $4,238.87, is the deductible half. On $10,000 the same sketch is $1,412.96. A $100 profit produces a net-earnings base of $92.35, which is under the $400 floor, so Schedule SE tax is $0.
| Step | Amount |
|---|---|
| Net profit | $60,000.00 |
| 92.35% net-earnings base | $55,410.00 |
| Social Security 12.4%, wage base $184,500 | $6,870.84 |
| Medicare 2.9% | $1,606.89 |
| Schedule SE tax | $8,477.73 |
| Deductible half | $4,238.87 |
| $100 profit, net earnings $92.35, under the $400 floor | $0.00 |
IRS source, checked 2026-10-11. IRS self-employment tax.
The IRS self-employment tax page, checked 11 Oct 2026, says you file Schedule SE when net earnings from self-employment are $400 or more, and that the rate is 15.3% (12.4% Social Security and 2.9% Medicare). That page's wage-base sentence still names the 2024 figure of $168,600. This sketch uses the SSA 2026 contribution and benefit base of $184,500 instead. IRS Topic 554 describes the 92.35% net-earnings step. Additional Medicare Tax at 0.9% uses the filing-status thresholds on the IRS self-employment tax page and is labeled here as Form 8959, not Schedule SE. The 2026 Schedule SE form is still a draft, so the $400 line and the $184,500 line should be re-read when the final form is posted.
Related sketches: mileage deduction, home office deduction, quarterly estimated tax, 1099-NEC threshold, SEP-IRA, solo 401(k), HSA contribution.