JohnB5677
Expert Alumni

Self employed

Unfortunately, your concerns are real.  If that was all of your income, with the standard deduction you didn't pay any income taxes.  All of the $600 was for self-employment tax.  

 

I suggest that you pay quarterly estimated taxes for 2023.

Please see this article Estimated Taxes: How to Determine What to Pay and When

 

These are the Standard deductions for 2022.  This is deducted from income before you pay income taxes.

For single taxpayers and married individuals filing separately, the standard deduction is $12,950 in 2022.

For married couples filing jointly is $25,900, and 

For heads of households, the standard deduction is $19,400.

 

The self-employment tax rate is 15.3%. That rate is the sum of 12.4% for Social Security and 2.9% for Medicare.

 

 

 

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