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Get the free Sec. 1401. Rate Of Tax - Internal Revenue Code

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Section 1401 refers to the self-employment tax rate that applies to net earnings from self-employment, which is generally 15.3%.
Individuals who have net earnings of $400 or more from self-employment are required to file for Section 1401.
To fill out Section 1401, taxpayers need to report their net earnings from self-employment on Schedule SE (Form 1040) and calculate the self-employment tax.
The purpose of Section 1401 is to impose a self-employment tax on net earnings to fund Social Security and Medicare.
Taxpayers must report their total self-employment income, any allowable deductions, and calculate the self-employment tax on Schedule SE.
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