topic Does turbotax deduct self employment from refund in Deductions & credits

Does turbotax deduct self employment from refund

Charmnicole1 — Sat, 20 Mar 2021 15:26:51 GMT

My question is this. Turbo tax estimated my self employment. Did it already take it out of my refund? Or would I pay that separately to the irs? This is my first time filing self employed, and it told me my estimated taxes but I just want to know if the money was already removed from my refund automatically or if thats what I owe and will have to pay on a certain date myself.

Re: Does turbotax deduct self employment from refund

AnnetteB6 — Sat, 20 Mar 2021 15:57:11 GMT

The final refund or balance due amount shown on your Federal Form 1040 has already taken into account any self-employment (SE) tax that you might owe. The SE tax is not paid separately.

You can see this when you take a look at your Form 1040. Line 24 shows your total tax, which will include SE tax reported as part of line 23. Then, the total tax will be compared to line 33 which shows your total payments (including any refundable credits). If the total payments is greater than your total tax, then you will have a refund.

Re: Does turbotax deduct self employment from refund

Charmnicole1 — Sat, 20 Mar 2021 16:23:00 GMT

@AnnetteB6 thank you for this clear up. I was confused because when I got to the final file part I was stopped and told to fill out an SE portion anyways. Which I assumed turbo tax already did for me.(it ended up showing me my estimated portion after I refreshed.) I put "0" and it let me continue on. But I wanted to make sure that I didn't do something wrong and misinterpret the information.