Use Schedule SE (Form 1040) to report and figure your SE tax. Then enter the SE tax on line 52 of Form 1040 and attach Schedule SE to Form 1040.

Most taxpayers can use Section A-Short Schedule SE to figure their SE tax. However, certain taxpayers must use Section B-Long Schedule SE . Use the chart on page 1 of Schedule SE (reproduced later in this publication) to find out which one to use.

If you have to pay SE tax, you must file a Form 1040 (with Schedule SE attached) even if you do not otherwise have to file a federal income tax return.

Joint return. If you file a joint return, you cannot file a joint Schedule SE (Form 1040). This is true whether one spouse or both spouses have SE income. If both of you have SE income, each of you must complete a separate Schedule SE (Form 1040). Attach both schedules to the joint return. If you and your spouse operate a business as a partnership, see Husband and wife partners, earlier, under Partnership Income or Loss.

More than one business. If you have more than one trade or business, you must combine the net profit (or loss) from each business to determine your net SE income. A loss from one business will reduce your profit from another business. File one Schedule SE showing the net SE income, but file a separate Schedule C or F for each business.

Example. You are the sole proprietor of two separate businesses. You operate a restaurant that made a net profit of $25,000. You also have a cabinetmaking business that had a net loss of $500. You file Schedule SE showing net SE income of $24,500. You must also file a Schedule C for each business--a Schedule C for the restaurant showing your net profit of $25,000 and another Schedule C for the cabinetmaking business-- showing your net loss of $500.

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