What does NESE stand for?

Imposition of MTA Payroll Tax on Self-Employed Individuals Effective for tax years beginning on or after January 1, 2009, individuals with net earnings from self-employment allocated to the MCTD, including partners in partnerships and members of LLCs that are treated as partnerships, are subject to the MTA payroll tax.

If your net earnings from self-employment were $400 or more.

If you operate more than one business, your net earnings from self-employment are the combined net earnings from all your businesses.

In general, once you have the following gross-income amounts, the law requires you to file a federal tax return with the IRS: Single — $7,950 Head of household — $10,250 Married filing jointly — $15,900 Married filing separately — $3,100 Qualifying widower (with dependent child) — $12,800 Generally, a person who is self-employed must file a tax return if his or her net earnings from self-employment for the year exceed $400.

Wage Base for Social Security Taxes For 2005, the Social Security portion of FICA and self-employment taxes will apply to the first $90,000 of wages and/or net earnings from self-employment (up from $87,900 in 2002).

In addition, one-half of the self-employment tax (computed without regard to this deduction) can be deducted in computing net earnings from self-employment.

Russell Feingold (D-WI) would modify the optional method of computing net earnings from self-employment.

Section 32 (c)(2)(A) defines it for purposes of the earned income credit as any wages, salaries, tips and other employee compensation that are includible in gross income for the taxable year, plus the amount of the taxpayer's net earnings from self-employment for the taxable year (within the meaning of IRC section 1402(a)).