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Get your taxes done using TurboTax
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!
March 4, 2021
4:49 PM