Which tax form is a sole proprietor required to use for self-employment tax?

A sole proprietor must report their self-employment income and calculate the self-employment tax using Form 1040 in conjunction with Schedule SE. The 1040 is the individual income tax return form that all taxpayers, including sole proprietors, must file. Schedule SE is specifically designed to calculate the self-employment tax on net earnings from self-employment, which is essential for sole proprietors because their business income is treated as personal income for tax purposes.

Understanding the forms involved is crucial for ensuring compliance with tax laws, as the self-employment tax includes contributions to Social Security and Medicare. By utilizing 1040 along with Schedule SE, a sole proprietor accurately represents their income and fulfills their obligation to pay self-employment tax based on net earnings from their business activities.