This is the first year my wife (self-employed) and I (W2) are married filing jointly. I’ve been able to manually calculate her Self-Employment Tax to match what the program calculated, however I have been unable to do the same for our Federal Tax owed. Based on the information below, hoping to get some help in figuring out where I may have gone wrong?
Of course, please let me know if any additional information is required!
INCOME
- W2 wages = $108,301
- Self-Employment Income = $99,435
- Dividends = $2,246
- Capital Gains = $35
- Interest (none is tax exempt) = $14,733
Her Self-Employed Net Income (Total Income – Expenses incl. IRA Contributions) = $80,364
TOTAL FED INCOME | $205,679 |
STANDARD DEDUCTION | $29,200 |
QBI (qualified business income) DEDUCTION | $14,751 |
Half of Self-Employ taxes DEDUCTION | $6,610 |
TAXABLE INCOME | $155,118.36 |
DIVIDEND INCOME | $2,246.00 |
TAXABLE INCOME - DIVIDEND INCOME | $152,872.36 |
TAXES
- Dividend Tax (calculated) = $337
- Total Federal Tax (calculated) = $28,939
- Total Federal Tax (from software)= $24,039
