I am employed. Why is all my federal refund gone once I enter self-employment income?

Forum|Forum|5 years ago
February 28, 2021
1 reply
5 views

The reduced amount of refund is much greater than (three times) the tax from the self-employment income that I entered.

TurboTax Premier Online

xmasbaby0

Level 15

When you are self-employed you are not having tax withheld from your paychecks nor are you paying Social Security and Medicare, so you have to pay all of that yourself at tax time unless you pay quarterly tax to keep your tax liability lower at tax time. You most likely had tax withheld from your W-2 job and were getting a refund until you added the untaxed additional income. Did you prepare a Schedule C for your business expenses? You are posting from Premier--not Self-Employed. You need Self-Employed to prepare a schedule C for business expenses.

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

https://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs

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