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If my total taxable income for 2017 was $33,122, why am I being taxed at 22% instead of 12%?

I am an unmarried individual with no children. 

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Coleen3
Intuit Alumni

If my total taxable income for 2017 was $33,122, why am I being taxed at 22% instead of 12%?

Any profit from your Schedule C Profit or Loss from Business is taxed at 15.3%. The Social Security would be  taxed at 6.2 and the Medicare at 1.45% were you an employee. These amounts would be withheld on your W-2 every pay period. Since you are, in a way, both employer and employee, these amounts are doubled on your Schedule SE.

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6 Replies

If my total taxable income for 2017 was $33,122, why am I being taxed at 22% instead of 12%?

Is any of it self-employment income from cash, a 1099-MISC or a K-1?

If my total taxable income for 2017 was $33,122, why am I being taxed at 22% instead of 12%?

Yes, the majority is from a 1099-MISC. Does that change the tax bracket I am in?

If my total taxable income for 2017 was $33,122, why am I being taxed at 22% instead of 12%?

No, but it means that in addition to regular income tax, you have to pay self-employment tax (Medicare and Social Security) on your net income from self-employment.  This is taxed at 14.1%.

If my total taxable income for 2017 was $33,122, why am I being taxed at 22% instead of 12%?

Thank you! This is very helpful.
Coleen3
Intuit Alumni

If my total taxable income for 2017 was $33,122, why am I being taxed at 22% instead of 12%?

Any profit from your Schedule C Profit or Loss from Business is taxed at 15.3%. The Social Security would be  taxed at 6.2 and the Medicare at 1.45% were you an employee. These amounts would be withheld on your W-2 every pay period. Since you are, in a way, both employer and employee, these amounts are doubled on your Schedule SE.

Coleen3
Intuit Alumni

If my total taxable income for 2017 was $33,122, why am I being taxed at 22% instead of 12%?

My pleasure.
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