The law sets the self-employment tax rate as a percentage of your net earnings from self-employment. This rate consists of 12.4% for social security and 2.9% for Medicare taxes.

The maximum amount of net earnings subject to the 12.4% social security portion of the self-employment (SE) tax for 2019 is $132,900. All net earnings of at least $400 are subject to the Medicare part of the tax.

Self-Employment Income* is income from:

• Sole proprietorship business (Schedule C)
• Farm (Schedule F)
• Certain partnership income and guaranteed payments (Schedule K-1, Form 1065)
• Church employee (lay persons) income of $108.28 or more
• Income for services performed as a minister or a member of a religious order

*See IRS Tax Topic 554 - Self-Employment Tax and Understanding Employment Taxes for detailed information.