For the initial $20k, i did pay a 1040-ES of $6000 already though, which would have covered that $20,000. Assuming that $6000 tax covers the initial $20,000, wouldn't my federal tax owed be $7200 or so, and not $9000?
Sorry for all the 'dumb' questions... I guess i'm just trying to wrap my head around this.
I looked at the tax brackets for state, and I won't be jumping brackets either..
So based on your math, please correct me if i'm wrong:
- 20,000 x 15.3% self-employment tax = $3,060
- $40,000 x 15.3% self-employment tax = $6,120
It also looks like the difference between $20,000 and $40,000 taxes owed is roughly $3000, not the $7800 difference that turbotax is showing.
