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New Member
posted Feb 21, 2025 6:58:27 AM

why is my taxable income only $2532 but the tax rate as high as 162.4%?

is your system calculated right ?

0 2 512
2 Replies
Expert Alumni
Feb 21, 2025 7:30:20 AM

Can you provide more info on what types of income you have?

 

Without knowing what type of income you have, one scenario could be that you are self-employed and took a self-employed health insurance deduction which lowered your taxable income but does not affect your self-employment taxes.  This would leave you paying the 15.3% SE taxes on the amount of health insurance you deducted.  So if you deducted $12,000 in insurance premiums, that would still leave you with $1,836 in SE taxes. 

 

If you are not self-employed, then please respond with what types of income you have and a little more detail. 

Level 15
Feb 21, 2025 7:36:14 AM

Already answered multiple times....at least 4 repeat posts so far covering the same thing.