[Code of Federal Regulations]
[Title 26, Volume 12]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.1401-1]

[Page 9-10]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1--INCOME TAXES--Table of Contents
 
Sec. 1.1401-1  Tax on self-employment income.

    (a) There is imposed, in addition to other taxes, a tax upon the 
self-employment income of every individual at the rates prescribed in 
section 1401(a) (old-age, survivors, and disability insurance) and (b) 
(hospital insurance). (See subparagraphs (1) and (2) of paragraph (b) of 
this section.) This tax shall be levied, assessed, and collected as part 
of the income tax imposed by subtitle A of the Code and, except as 
otherwise expressly provided, will be included with the tax imposed by 
section 1 or 3 in computing any deficiency or overpayment and in 
computing the interest and additions to any deficiency, overpayment, or 
tax. Since the tax on self-employment income is part of the income tax, 
it is subject to the jurisdiction of the Tax Court of the United States 
to the same extent and in the same manner as the other taxes under 
subtitle A of the Code. Furthermore, with respect to taxable years 
beginning after December 31, 1966, this tax must be taken into account 
in computing any estimate of the taxes required to be declared under 
section 6015.
    (b) The rates of tax on self-employment income are as follows:
    (1) For old-age, survivors, and disability insurance:


                         Taxable year                           Percent

Beginning before January 1, 1957.............................          3
Beginning after December 31, 1956 and before January 1, 1959.      3.375
Beginning after December 31, 1958 and before January 1, 1960.       3.75
Beginning after December 31, 1959 and before January 1, 1962.        4.5
Beginning after December 31, 1961 and before January 1, 1963.        4.7
Beginning after December 31, 1962 and before January 1, 1966.        5.4
Beginning after December 31, 1965 and before January 1, 1967.        5.8
Beginning after December 31, 1966 and before January 1, 1968.        5.9
Beginning after December 31, 1967 and before January 1, 1969.        5.8
Beginning after December 31, 1968 and before January 1, 1971.        6.3
Beginning after December 31, 1970 and before January 1, 1973.        6.9
Beginning after December 31, 1972............................        7.0


    (2) For hospital insurance:


                         Taxable year                           Percent

Beginning after December 31, 1965 and before January 1, 1967.       0.35
Beginning after December 31, 1966 and before January 1, 1968.        .50
Beginning after December 31, 1967 and before January 1, 1973.        .60
Beginning after December 31, 1972 and before January 1, 1974.        1.0
Beginning after December 31, 1973 and before January 1, 1978.        .90
Beginning after December 31, 1977 and before January 1, 1981.       1.10
Beginning after December 31, 1980 and before January 1, 1986.       1.35
Beginning after December 31, 1985............................       1.50


    (c) In general, self-employment income consists of the net earnings 
derived by an individual (other than a

[[Page 10]]

nonresident alien) from a trade or business carried on by him as sole 
proprietor or by a partnership of which he is a member, including the 
net earnings of certain employees as set forth in Sec. 1.1402(c)-3, and 
of crew leaders, as defined in section 3121(o) (see such section and the 
regulations thereunder in part 31 of this chapter (Employment Tax 
Regulations)). See, however, the exclusions, exceptions, and limitations 
set forth in Secs. 1.1402(a)-1 through 1.1402(h)-1.

[T.D. 6993, 34 FR 828, Jan. 18, 1969, as amended by T.D. 7333, 39 FR 
44445, Dec. 24, 1974]