Intuit Academy Tax Practice Exam 2025 - Free Tax Practice Questions and Study Guide

Schedule SE is specifically used for reporting self-employment income, which is income earned by individuals who work for themselves rather than receiving a wage or salary from an employer. This form enables taxpayers to calculate the self-employment tax, which covers Social Security and Medicare taxes on net earnings from self-employment.

Self-employment income can arise from business activities, freelance work, or other forms of non-employee compensation. Essentially, individuals who receive this type of income must report it on Schedule C or Schedule C-EZ (for simpler cases) and then transfer the net income to Schedule SE to determine their self-employment tax obligation.

In contrast, investment income, employee wages, and rental income have different reporting requirements. Investment income typically falls under various other schedules or forms, wages are reported directly on Form 1040, and rental income is often reported on Schedule E. Therefore, Schedule SE is uniquely dedicated to addressing the needs of self-employed individuals, ensuring they fulfill their tax responsibilities accurately.