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Get your taxes done using TurboTax
The $638 is self-employment tax. You do not owe any income tax, but you have to pay self-employment tax on your business income. They are two separate taxes. "Taxable income" means income that is subject to income tax. Self-employment tax is the equivalent of the Social Security and Medicare taxes that would be withheld from your pay if you were an employee instead of self-employed.
May 27, 2020
2:14 PM