If you have self-employment income, then you can take a deduction for half of your Self-Employment Tax. Self-employment income includes any of the following: net profit from a Schedule C, guaranteed payments from a Partnership, or wages from an S-Corporation.
First, you must calculate your Self-Employment Tax on Schedule SE, and carry your total SE Tax figure to Form 1040 Line 57.
You take a tax deduction for one-half of the Self-Employment Tax on Form 1040 Line 30. Take the figure on Line 57 and divide by two. Enter this figure on Line 30.
Back to Step 5: Adjustments to Income
