Taxes seem really high given deductions and amount made
Made 19,205 as self employed via a 1099misc, I'm single, and am claiming ~1400 in business expenses. Turbo has me owing 2,995, which seems higher than it should be. Any input?
That can be right. You only had $1,400 in expenses? Leaving a Net Profit of 17,800?
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. You do get to take off the 50% ER portion of the SE tax as an adjustment on line 27 of the 1040. The SE tax is already included in your tax due or reduced your refund. It is on the 1040 line 57.
The SE tax is in addition to your regular income tax on the net profit.
