2025 Schedule SE - Freetax did not create this for my >$400 self-employment income

JimmyFrank
JimmyFrank Member Posts: 1 Newcomer
in Income

Freetax did not create this for my 2025 return, as it did for 2024 and years before.

I asked the chatbot but just got a "cut and Paste" response exactly the same as the vague language in the Support Center "if a Schedule SE is needed Freetaxusa will automatically create one"

Does anyone else have this issue? I resubmitted to the chatbot, asking for a person to read/understand and respond to my question.

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Answers

  • MatthewD
    MatthewD FreeTaxUSA Admin, FreeTaxUSA Agent Posts: 843 image
    Hi JimmyFrank,

    Keep in mind that the Schedule SE will only be calculated on NET business income > $400. If you have business expenses which reduce your business income to less than $400, then the Schedule SE will NOT be generated. Check what your Net Business Income on your Schedule C is.

    Contact Customer Support for any additional questions as they will be able to view your account and tax return.
  • Alias037
    Alias037 Member Posts: 1 Newcomer
    edited February 23

    Schedule SE uses 92.35% of your NET Self-Employed income amount to determine self-employment tax.

    If 92.35% in dollar equivalent is less than $400, you are not subject to self-employment tax, and Schedule SE will not generate.

    That’s might be a reason why FreeTaxUSA isn’t creating it.

  • MatthewD
    MatthewD FreeTaxUSA Admin, FreeTaxUSA Agent Posts: 843 image
    Hi Alias037,

    You've got it exactly right. The $400 threshold for Schedule SE is applied to line 4c of the form, which is 92.35% of your net self-employment earnings — not the raw net income figure from Schedule C. Per the IRS Schedule SE instructions: "Combine lines 4a and 4b. If less than $400, stop; you don't owe self-employment tax." (https://www.irs.gov/pub/irs-pdf/f1040sse.pdf)

    So if your net self-employment income is, say, $430, then 92.35% of that is about $397 — which falls below $400, and Schedule SE would not be generated. FreeTaxUSA is applying this rule correctly.

    If your net income is clearly well above the threshold and Schedule SE still isn't appearing, it's worth double-checking that your Schedule C net income (line 31) is positive and above the threshold after the 92.35% adjustment. If everything looks correct and the form still isn't generating, I'd recommend reaching out to Customer Support directly so they can review your return.

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