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Level 3
posted Jan 18, 2021 7:51:44 PM

During 2020, I had a 1-hour consulting gig where I earned $425 of 1099-NEC income. I didn't make any est. payment. Sch C was auto generated, but why was my SE tax zero?

I had no other deductions since it was only a 1-hour gig.

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1 Best answer
Level 15
Jan 18, 2021 7:59:26 PM

The actual calculation of self-employment tax produces a result of zero tax if net self-employment income is $432 or less.

 

2 Replies
Level 15
Jan 18, 2021 7:59:26 PM

The actual calculation of self-employment tax produces a result of zero tax if net self-employment income is $432 or less.

 

Level 3
Jan 18, 2021 8:12:51 PM

Thanks! That's very helpful!