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Dear DianeW777, 

 

Thank you for your reply.

I was so shocked and focused on the tax rate of 59%....and was not really thinking how my tax has been in the past. Your reply remembered me that the self-employment tax rate is calculated based on the net income, not on the taxable income. Now it make sense. Adding all the credits -----the final effective tax rate became a negative amount. I guess I do not need to worry about the "effective tax rate" next time and just focus on the actual calculation.

 

Anyway, I have finished the filing. Thank you so much for your help!