topic Why is the standard deduction of 12,950$ not being subtracted from self employment income (less than 15K), resulting in tax owed of close to 20% of the income, for 2022? in Self employed

Why is the standard deduction of 12,950$ not being subtracted from self employment income (less than 15K), resulting in tax owed of close to 20% of the income, for 2022?

sophia-chrys — Mon, 23 Feb 2026 12:22:38 GMT

I reported a small self employment income of under 15K (I am a college student) and turbotax claims that I need to pay 2K in taxes, even after applying the standard deduction (of 12,950$). That makes little sense

Re: Why is the standard deduction of 12,950$ not being subtracted from self employment income (le...

CatinaT1 — Thu, 16 Feb 2023 21:37:26 GMT

When you are self-employed, you pay both income tax on your income and self-employment tax on your profit.

Your standard deduction reduces you income to determine your taxable income. You income tax is calculated from this.

Self employment tax 15.3%. Your standard deduction can not reduce self-employment tax.

Below are a couple of links that might be useful to you.

About Schedule C

Self Employed Individuals Tax Center