Author: Annette Nellen
CPE Credit: 2 hours for CPAs
Self-employment tax issues continue to grow in complexity as the economy evolves, particularly with the rise of the sharing economy, LLC structures, limited partnerships, and flexible work arrangements. This course provides tax professionals with a comprehensive and practical framework for identifying when self-employment tax applies, how to navigate exceptions, and how to correctly report obligations in a rapidly changing environment. Participants will explore recent court decisions, hobby-loss factors, implications of short-term rentals, and due diligence best practices that help reduce exposure to IRS assessments. Attendees will also gain clarity on the additional Medicare tax, 2026 Social Security wage limits, and compliance considerations affecting modern business models.
Publication Date: April 2026
Designed For
This course is ideal for tax professionals seeking a deeper, more practical understanding of self-employment tax obligations across modern business structures and emerging economic activity.
Topics Covered
- Basics of the self-employment tax statute and regulations
- Types of taxpayers and activities subject to self-employment tax and the key exceptions
- A review of recent cases on SE tax
- Due diligence considerations and avoiding problems
Learning Objectives
- Determine when an individual is subject to self-employment tax across various business models and activities
- Calculate the additional Medicare tax for individuals with earned income and identify the correct reporting forms
- Evaluate key exceptions for self-employment tax, including statutory and regulatory exclusions
- Analyze recent case law addressing self-employment tax exposure for limited partners and LLC members
- Apply due diligence procedures to prevent compliance errors and reduce IRS scrutiny
- Identify the 2026 Social Security wage limit and its impact on taxpayers
- Explain how to use the multi-factor hobby-versus-business test to determine whether activities create self-employment tax obligations
Level
Basic
Instructional Method
Self-Study
Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
