DianeW777
Expert Alumni

Get your taxes done using TurboTax

If you self-employment is $35,583 then the self employment tax on this amount is $5,027 ($35,583 x .9235 x .153). Half of that is allowed as a deduction from your income and then you have the standard deduction of $18,350. Total reduction to your income is $20,864 using only those two numbers. The taxable income is $14,719.

 

The tax from the tables is $1,485 plus SE tax of $5,027 = $6,512.

 

The earned income tax credit (EITC) for one child would be $988 and higher with more than one child.  IRS EITC Tables 2020

You would also have the child tax credit of a minimum of $$1,485 (personal tax liability).

 

Take last year's return and compare it line-by-line to check the differences and you should find out why.  It may be that the income jumped up enough to reduce the EITC. Check line 28, Form 1040, to see if you have the ACTC or refundable portion listed. This may show the other portion and you should also see Form 8812 in your tax file.

 

EITC came about to help taxpayers in the lower incomes and as a reward for working towards income growth. The tables are structured for the more you make the more you get until you reach the mid range which the maximum.  Then as the income rises and the amounts decrease.  By looking at the tables you will see how and where it changes.

 

Please add more any additional questions you may have or to clarify some of the information.

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