topic Tax rate is above 80% for self employment tax. I took the standard deduction after that income was around $4k, and it is saying I own over $3k in taxes? in Self employed

Tax rate is above 80% for self employment tax. I took the standard deduction after that income was around $4k, and it is saying I own over $3k in taxes?

kareezia — Wed, 28 Jan 2026 07:03:51 GMT

Re: Tax rate is above 80% for self employment tax. I took the standard deduction after that income was around $4k, and it is saying I own over $3k in taxes?

DoninGA — Sun, 26 Jan 2025 12:09:39 GMT

Only 92.35% of your Net self-employment income is used to calculate Self-Employment taxes. The SE tax rate is 15.3%

SE taxes are reported on your federal tax return, Schedule 2 Line 4. The amount from Schedule 2 Part II Line 21 flows to Form 1040 Line 23

Re: Tax rate is above 80% for self employment tax. I took the standard deduction after that incom...

BrittanyS — Sun, 26 Jan 2025 14:06:07 GMT

Self-employed individuals will pay income tax and self employment tax when they file their income tax return. The self-employed tax rate is 15.3% of 92.35% of your self-employment income. You are paying both the employer portion and the employee portion of the Medicare and social security tax. Once your self-employment is calculated it is added to your 1040 return. The self-employment tax you pay does not offset your income tax. Your income tax will be calculated based on your total income exceeding the standard deduction.

For more information on Self-Employment Tax and Income Tax, see the links below:

@kareezia