Self-employed small business owner, feel I am being taxed at the wrong rate in Turbo-Tax

[Traylor717]

It's my understanding that I am taxed at a 15.3% rate (up to $137,000 +2.9% on income levels above that for a total of 18.2%). 

I started my return, have yet to put in Deductions or info (though some was carried over automatically from last year for the following numbers... 

Gross sales for my business was $213,861 as reported from a 1099K, it then updated to $54,511 which is about 25.5%. Looking further at the details, TurboTax is showing the math as:

Income and Adjustments: $202,757

Deductions: $18,350

Taxable Income: $160,055

Total Tax: $53,933

Total Payments: $0

Refund/Tax Due: $-54,511

With a taxable income of $160,055, and tax of $53,933, that's effectively a tax rate of 33.7%, far above what I would expect (I'm divorced, head-of-household filer if that helps to know). I know I still have deductions to add, expenses for the business and such, but the tax rate alone just seems WRONG. I questioned it last year and went to a professional to check everything and they pretty much verified TurboTax's number to a similar number. 

The question would be how is that being taxed at a self-employment rate? Am I doing something wrong, or is there a setting I'm missing? Based on everything this year, I'm expecting to be taxed on about $70,000, but at 15.3%, not 33%. Can anyone help, please? 

[VolvoGirl]

You pay both regular income tax and self employment tax on your Net Profit on Schedule C.

 Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment.  You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400.  The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.  So you get social security credit for it when you retire.   

The SE tax is in addition to your regular income tax on the net profit.  You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040 Schedule 1 line 14 which flows to 1040 line 8a.  Turbo Tax automatically calculates the SE Tax and Adjustment.

The 50% SE tax deduction only reduces your taxable income and regular income tax.  It will not reduce your schedule C Net Profit or reduce the total self employment tax.  

For 2019 Schedule C Net Profit or Loss now goes to 1040 Schedule 1 line 3.  Then the total on schedule 1 line 9 goes to 1040 line 7a.