topic Tax owed higher than Taxable Income in Deductions & credits

Tax owed higher than Taxable Income

jino08 — Sat, 01 Feb 2020 07:41:02 GMT

Hi all. In search of some help.

My current taxable income is ~800 after standard deduction. However, my taxes owed is ~2000. Is this correct? If so, how can my taxes be higher than my taxable income?

Income ~13,000 so standard deduction of ~12,200 brings to ~800.

Thank you!

Re: Tax owed higher than Taxable Income

Anonymous — Sat, 01 Feb 2020 08:11:41 GMT

if the $13,000 is from self-employment - i.e. you're filing schedule C you will owe self-employment tax of about

$1,800 about another $100 in regular income taxes and if you failed to meet the required payments during the year there would be penalties for underpayment of estimated tax.

if you are not self employed, did you have marketplace insurance where your credit was to large so now you need to pay back the excess.

other than that, check all your entries

Re: Tax owed higher than Taxable Income

jino08 — Sat, 01 Feb 2020 20:50:33 GMT

Hi @Anonymous, it is not from self-employment.

I don't believe that it would be from marketplace insurance.

How would I be able to tell?

All entries seem correct as of now. I appreciate your input.

In the description, it says my blended tax rate is at ~300%, how is that possible?