Is self employment tax applied after the standard deduction is applied?

Ervin Overbee: It is applied to NET business income (after deducting business expenses). Essentially, the last line on Schedule C.

Avis Brantner: No. Self employment tax is applied to the profit on line 31 of Schedule C. Note the instructions printed right on line 31, i.e. "If a profit, enter on both Form 1040, line 12 ... and on Schedule SE, line 2."

Rubi Romo: you are really confused, the standard deduction has NOTHING to do with your self employment taxyou determine your sch C 'net' amount which you enter on Sch SE, and calculate the self employment tax therewhen you have your AGI computed, you apply your personal exemptions, then your standard deduction to determine your taxable income, then the income tax you owe, after that the amount of your self employment tax is added, so with any income tax you might owe and the se tax, that will be your total tax billand remember that half the SE tax is a credit to reduce your gross income(which then is your AGI! )...Show more