 Now, obviously tax software kind of helps us with this. It's kind of weird the way this happens then because we're talking social security has basically a flat tax type of system, one rate, up until you hit the cap and then you don't pay any of it at that point because of this kind of retirement structure. But Medicare seems more like it's still a safety net program and we have now added like a progressive tax tier to it, in other words, meaning you pay one rate, which is easy to calculate until you get over a certain threshold and then you've got the additional Medicare, which in essence is a higher rate. Now you're adding on another rate if your income is over a certain threshold. So special rules and exceptions, aliens. Generally resident aliens must pay SE tax under the same rules that apply to U.S. citizens. Non-resident aliens are not subject to SE tax unless an international social security arrangement, also known as totalization agreement, in effect determines that they are covered under the U.S. social security system. Now aliens, it becomes somewhat of a problem when you're dealing with people that aren't citizens because now you have a system where you're thinking if you're gonna be putting money into the social security Medicare, then you would think that you should be benefiting from the system. So if you put money into the social security and now we think of social security as like a government funded retirement plan, but you're not able to get the benefits from the government funded retirement plan system because you're not a citizen or something like that, then it doesn't seem fair to be taking the money out for that reason, which again, leads to kind of weird situations because normally if you asked a U.S. citizen, would you like to put money into the social security system or not? And then just say for your own retirement, I think most people would say, I'll choose not to given the fact that the social security system is gonna, it looks like it's heading towards off the cliff at some point in time in the future. But so again, it's kind of weird, but you can see the rationale. I need not explain my rationale to you or to any other member of this crew. Here they're saying, well, if it's an alien that it doesn't make sense to force them to put in in certain situations to the retirement plan that they don't have the capacity to get a benefit from and so on. So however, residents of the U.S. Virgin Islands, Puerto Rico, Guam and the Commonwealth of Northern Mariana Islands and American Samoa are subject to S.E. tax as they are considered U.S. residents for S.E. tax purposes. So for more information on aliens, you can see publication 519 U.S. Tax Guide for more information there. So child employed by parent. So you are not subject to S.E. self-employment tax if you are under age 18 and you are working for your father or mother. So you can simplify things a little bit in that situation. Church employee, if you work for a church or a qualified church controlled organization other than as a minister, member of a religious order or a Christian science practitioner that elected an exemption from the Social Security Medicare Taxes, you are subject to S.E. tax if you receive $108.28. Now that number again is one of these rules that's quite low. Like why do you even need to tell us this number? That's such a funny number because it's so like ridiculously like seems low. And that's because they haven't really, it's one of those laws they haven't changed like forever. So they still kind of have that number hanging out there. It hasn't increased with inflation, for example. So or more in wages from the church or you can say, so for more information you can see publication 517 Social Security and other information for members of the clergy and religious workers. So fishing crew members, there's all these weird regulations with regards to fishing crews for some reason as well which I'm not a specialized in. So if you are a member of the crew on a boat that catches fish or other aquatic life your earnings are subject to SE self-employment tax if all the following conditions apply. One, you do not get any part, any pay for the work except your share of the catch or a share of the proceeds from the sale of the catch unless the pay meets all the following conditions. A, the pay is not more than $100 per trip. B, pretty low threshold there. B, the pay is received only if there is a minimum catch and C, the pay is solely for additional duties such as mate engineer or cook for which additional cash pay is traditional in the fishing industry. Two, you get a share of the catch or share of the proceeds from the sale of the catch. Three, your share depends on the amount of the catch and four, the boats operating crew normally numbers fewer than 10 individuals. An operating crew is considered as normally made up a fewer than 10 if the average size of the crew on trips made during last year calendar quarters is fewer than 10. Okay, it's kind of a special situation. Notary public, so fees you receive for services you perform as a notary public are reported on Schedule C but are not subject to SE tax see the instructions for Schedule SE Form 1040. Another somewhat unusual situation. State or local government employee, you are subject to SE self-employment tax if you are an employee of a state or local government are paid solely on a fee basis and your services are not covered under a federal state social security agreement. Then we've got the foreign government or international organization employee. So you are subject to SE tax if both the following conditions are true. Number one, you are a US citizen employed in the United States, Puerto Rico, Guam, America, Samoa, the Commonwealth of North Mariana Islands and the US Virgin Islands by A, a foreign government, B, a wholly owned agency of a foreign government or C, an international organization and two, your employer is not required to withhold social security and Medicare taxes from your wages. All right, US citizen or resident alien residing abroad. So if you are a self-employed US citizen or resident alien living outside the United States in most cases, you must pay social security tax SE tax or self-employment tax. The foreign earnings from self-employment can't be reduced by your foreign earned income exclusion when computing the self-employment tax. So it gets a little bit messy of course in these types of situations because we're gonna have tax agreements with other countries to try to avoid a double taxation type of situation. So you gotta do some more research on your particular situation in those cases. Exception, the United States has social security agreements with many countries to eliminate double taxation under two social security systems. So now you are in a special situation in that you have an agreement because the two countries have their own social security systems. And the whole idea of the social security system is that you're kind of paying into it and you're gonna get some benefit from the state-funded social security kind of system. So under these agreements, you must generally only pay social security and Medicare taxes to the country in which you live. The country to which you must pay the tax will issue a certificate that services as proof, that serves as proof of exception from social security tax in the other country. So for more information, you can see the instructions for schedule SE form 1040. So more than one business. So if you have earnings subject to self-employment tax from more than one trade, business or profession, you must combine the net profit or loss from each to determine your total earnings subject to SE tax. So if you have multiple schedule SEs, for example, you would have to combine the bottom lines of the schedule SEs and that would pull into the self-employment and then calculate self-employment based on the total earnings. So a loss from one business reduces your profit from another. So what if you had one business that made 100,000 and the other business that lost 25,000, then the net 75,000 you would think then would be the number subject to the self-employment. So community property income, if any of the income from a trader business other than partnership is community property income under state law, it is included in the earnings subject to self-employment SE tax of the spouse carrying on the trade or business. Gain or loss, do not include earnings subject to SE self-employment tax. A gain or loss from the disposition of property that is neither stock in trade nor held primarily for sale to customers. So it does not matter whether the disposition is a sale and exchange involuntary conversion. So when we think about the different types of incomes, you can think about income that's gonna be subject to self-employment tax or not.