Turbotax Home & Business tells us that we owe $2000 even though our taxable income is only $1961. How is it possible that our taxes are higher than our taxable income?

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Turbotax Home & Business tells us that we owe $2000 even though our taxable income is only $1961. How is it possible that our taxes are higher than our taxable income?

Do you have self-employment income?

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Turbotax Home & Business tells us that we owe $2000 even though our taxable income is only $1961. How is it possible that our taxes are higher than our taxable income?

Yes, my wife and I are both self-employed.

Turbotax Home & Business tells us that we owe $2000 even though our taxable income is only $1961. How is it possible that our taxes are higher than our taxable income?

You owe self-employment tax on the net income from your two businesses. It is 15.3% * 92.35% of that net income. The two businesses are assessed separately.

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