2004 Instructions for Form 1040 (ALL) - Supreme Law Firm
2004 Instructions for Form 1040 (ALL) - Supreme Law Firm
2004 Instructions for Form 1040 (ALL) - Supreme Law Firm
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Department of the Treasury<br />
Internal Revenue Service<br />
<strong>2004</strong> <strong>Instructions</strong> <strong>for</strong> Schedule SE (<strong>Form</strong> <strong>1040</strong>)<br />
Use Schedule SE (<strong>Form</strong> <strong>1040</strong>) to figure the tax due on net earnings from self-employment.<br />
Self-Employment The Social Security Administration uses the in<strong>for</strong>mation from Schedule SE to figure your<br />
benefits under the social security program. This tax applies no matter how old you are and<br />
even if you are already getting social security or Medicare benefits.<br />
Tax<br />
Additional in<strong>for</strong>mation. See Pub. 533.<br />
Section references are to the Internal Revenue Code.<br />
IRS approval, you will be exempt from of a religious sect recognized as being in<br />
paying SE tax on those net earnings. If you existence at all times since December 31,<br />
General <strong>Instructions</strong><br />
had no other income subject to SE tax, 1950, and which has provided a reasonable<br />
What’s New<br />
enter “Exempt—<strong>Form</strong> 4361” on <strong>Form</strong> level of living <strong>for</strong> its dependent members,<br />
<strong>1040</strong>, line 57. However, if you had other you are exempt from SE tax if you received<br />
For <strong>2004</strong>, the maximum amount of<br />
earnings of $400 or more subject to SE tax, IRS approval by filing <strong>Form</strong> 4029. In this<br />
self-employment income subject to social<br />
see line A at the top of Long Schedule SE. case, do not file Schedule SE. Instead, enter<br />
security tax is $87,900.<br />
“Exempt—<strong>Form</strong> 4029” on <strong>Form</strong> <strong>1040</strong>,<br />
If you have ever filed <strong>Form</strong><br />
Who Must File Schedule SE<br />
line 57. See Pub. 517 <strong>for</strong> details.<br />
2031 to elect social security<br />
You must file Schedule SE if:<br />
coverage on your earnings as a U.S. Citizens Employed by<br />
• Your net earnings from self-employthat<br />
election.<br />
International Organizations<br />
minister, you cannot revoke Foreign Governments or<br />
ment (see page SE-2) from other than<br />
church employee income were $400 or If you must pay SE tax, include this in-<br />
You must pay SE tax on income you earned<br />
more, or<br />
come on either Short or Long Schedule SE, as a U.S. citizen employed by a <strong>for</strong>eign<br />
• You had church employee income of line 2. But do not report it on Long Sched- government (or, in certain cases, by a<br />
$108.28 or more—see Employees of ule SE, line 5a; it is not considered church wholly owned instrumentality of a <strong>for</strong>eign<br />
Churches and Church Organizations betion<br />
under the International Organizations<br />
employee income. Also, include on line 2: government or an international organizalow.<br />
• The rental value of a home or an al-<br />
lowance <strong>for</strong> a home furnished to you (inthe<br />
United States, Puerto Rico, Guam,<br />
Immunities Act) <strong>for</strong> services per<strong>for</strong>med in<br />
Who Must Pay<br />
cluding payments <strong>for</strong> utilities), and<br />
Self-Employment (SE) Tax? • The value of meals and lodging pro- American Samoa, the Commonwealth of<br />
vided to you, your spouse, and your depenthe<br />
Virgin Islands. Report income from this<br />
the Northern Mariana Islands (CNMI), or<br />
Self-Employed Persons<br />
dents <strong>for</strong> your employer’s convenience.<br />
employment on either Short or Long<br />
You must pay SE tax if you had net earn- However, do not include on line 2: Schedule SE, line 2. If you per<strong>for</strong>med servings<br />
of $400 or more as a self-employed • Retirement benefits you received ices elsewhere as an employee of a <strong>for</strong>eign<br />
person. If you are in business <strong>for</strong> yourself from a church plan after retirement, or government or an international organizaor<br />
you are a farmer, you are self-employed.<br />
• The rental value of a home or an altax.<br />
tion, those earnings are exempt from SE<br />
You must also pay SE tax on your share lowance <strong>for</strong> a home furnished to you (inof<br />
certain partnership income and your cluding payments <strong>for</strong> utilities) after U.S. Citizens or Resident Aliens<br />
guaranteed payments. See Partnership In- retirement.<br />
come or Loss on page SE-2.<br />
Living Outside the United States<br />
If you were a duly ordained minister<br />
If you are a self-employed U.S. citizen or<br />
Employees of Churches and who was an employee of a church and you<br />
resident alien living outside the United<br />
Church Organizations<br />
must pay SE tax, the unreimbursed busi-<br />
States, in most cases you must pay SE tax.<br />
ness expenses that you incurred as a church<br />
If you had church employee income of<br />
You cannot reduce your <strong>for</strong>eign earnings<br />
employee are allowed only as an itemized<br />
$108.28 or more, you must pay SE tax.<br />
from self-employment by your <strong>for</strong>eign<br />
deduction <strong>for</strong> income tax purposes. Subearned<br />
income exclusion.<br />
Church employee income is wages you retract<br />
the allowable amount from your SE<br />
ceived as an employee (other than as a minearnings<br />
when figuring your SE tax. Exception. The United States has social<br />
ister or member of a religious order) of a<br />
If you were a U.S. citizen or resident security agreements with many countries to<br />
church or qualified church-controlled oreliminate<br />
dual taxes under two social securalien<br />
serving outside the United States as a<br />
ganization that has a certificate in effect<br />
minister or member of a religious order and ity systems. Under these agreements, you<br />
electing an exemption from employer somust<br />
generally pay social security and<br />
you must pay SE tax, you cannot reduce<br />
cial security and Medicare taxes.<br />
your net earnings by the <strong>for</strong>eign housing Medicare taxes to only the country you live<br />
Ministers and Members of<br />
exclusion or deduction.<br />
in.<br />
Religious Orders<br />
See Pub. 517 <strong>for</strong> details.<br />
The United States now has social secur-<br />
In most cases, you must pay SE tax on sala-<br />
ity agreements with the following counries<br />
and other income <strong>for</strong> services you per-<br />
Members of Certain Religious<br />
tries: Australia, Austria, Belgium, Canada,<br />
<strong>for</strong>med as a minister, a member of a Sects<br />
Chile, Finland, France, Germany, Greece,<br />
religious order who has not taken a vow of If you have conscientious objections to so- Ireland, Italy, Luxembourg, the Netherpoverty,<br />
or a Christian Science practitioner. cial security insurance because of your lands, Norway, Portugal, South Korea,<br />
But if you filed <strong>Form</strong> 4361 and received membership in and belief in the teachings Spain, Sweden, Switzerland, and the<br />
SE-1<br />
Cat. No. 24334P