topic Blended tax rate… in Self employed

Blended tax rate…

ryankimbro — Sat, 15 Apr 2023 18:09:21 GMT

Why tf is my blended tax rate 248.7%?!

I do contract work for a company and your saying I owe 2139 for what? More expenses besides gas, natural gas, inflation in general? On top of that you charge my a fee for being self employed??

Re: Blended tax rate…

xmasbaby0 — Sat, 15 Apr 2023 18:18:13 GMT

If you are working as an independent contractor, you have to pay self-employment tax for Social Security and Medicare, as well as ordinary income tax. In order to prepare a Schedule C to claim your business expenses you have to use online Self-Employed software or any version of the CD/download. We cannot see your tax return, nor do we know what else you entered, whether you claimed dependents, what your filing status is, etc.

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

https://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs

https://turbotax.intuit.com/tax-tools/calculators/self-employed/

Re: Blended tax rate…

ryankimbro — Sat, 15 Apr 2023 18:44:04 GMT

This info has nothing to do with 248.7% blended tax rate bs. I know what self employment is that’s why I am working as a contractor to make a decent living.

if I had known that I owe so **bleep** much then I would have saved more money.
still have to pay $178 for NO HELP self employment.

Re: Blended tax rate…

xmasbaby0 — Sat, 15 Apr 2023 18:57:46 GMT

You used the "do-it-yourself" version of online Self-Employed---which costs $119 for federal and $59 for a state return, so yes, you will need to pay for using the software. A "Live" version with help from a tax expert would cost much more ($209 for federal and $64 for state).

Re: Blended tax rate…

ryankimbro — Sat, 15 Apr 2023 19:03:20 GMT

The question is not about the “faulty self service system” the question has to do with WHY IS THERE 248.7% Blended TAX RATE.

Looks like another self filling corporate America legislation!

Re: Blended tax rate…

MonikaK1 — Sat, 15 Apr 2023 21:51:58 GMT

A blended tax rate, also known as the effective tax rate, is derived from a number of factors. The effective tax rate for individuals is the average rate at which their earned income, such as wages, and unearned income, such as stock dividends, are taxed. If you received income from a variety of things like stocks and bonds, interest, dividends, or self-employment, as was noted above, they may all play a role in determining your blended tax rate.

Also, this year, several tax credits have been lowered to amounts before the coronavirus pandemic—or eliminated entirely. This includes the Child Tax Credit, the Child and Dependent Care Credit, and more. Check if these changes affected your net tax.

Double-check your entries for income, taxes paid, and deductions to confirm they are correct. Compare the individual line items with last year's return as well, if applicable.

See this help article for more information.

For Federal income taxes, the tax rate brackets for 2022 are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. To see how the tax brackets apply to you for this year, and for a tool to determine your marginal (the highest part of your income) tax rate, see here.

You can preview your return before filing to review the forms that TurboTax has prepared from your entries and to find out how your taxes were calculated. See here for details.