Self Employed tax question

[Baby_nurse]

While I work full-time, my DH is trying to get a small business off the ground. We own the business together (50/50), as an LLC. IRS regulations let us file 2 schedule C's, dividing the income and expenses. In 2012, we had a grand total of $900 (I told you it was a small business) in income and $60 in expenses. We each filed the schedule C with a $420 profit.

Here's my question. I thought you were required to pay Self Employment tax on anything over $400. Turbo Tax didn't generate the Schedule SE. In fact, after going through the whole thing, it said we didn't owe SE tax. Why would that be?

Do I need to file an amended return?

[cooliemae]

If you look at the instructions for the Schedule SE (Page 4 left-hand column), you'll see that if you earn over $400 but less than $434 you don't have to file an SE because the profit is actually multiplied by less than 1 after $400. So you're fine! Good luck with the business!

[Baby_nurse]

Thanks, Cooliemae! I was having a minor panic attack.

So far this year we've done a lot more business, with the potential to gain a fairly lucrative contract. Fingers crossed.

Of course, then I will be tearing my hair out trying to figure out the quarterly stuff...