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New Member
posted Apr 13, 2024 10:00:56 PM

How can I have $0 taxable income but then owe $995 total tax? How did my self-employment income affect my return?

I don't understand how it could go from $0 taxable income to $995 balance due. Please help.

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1 Best answer
Expert Alumni
Apr 14, 2024 5:49:19 AM

If you reported self-employment income on your return, that income is subject to both income tax and self-employment tax.  If your return is showing $0 taxable income, that means that you are not subject to any income tax.  

 

Self-employment tax is separate and based only on your self-employment income.  So, you can still owe self-employment tax even when your taxable income is $0.  

 

Take a look at the following TurboTax information to learn more about self-employment tax:

 

What is the self-employment tax?
 

1 Replies
Expert Alumni
Apr 14, 2024 5:49:19 AM

If you reported self-employment income on your return, that income is subject to both income tax and self-employment tax.  If your return is showing $0 taxable income, that means that you are not subject to any income tax.  

 

Self-employment tax is separate and based only on your self-employment income.  So, you can still owe self-employment tax even when your taxable income is $0.  

 

Take a look at the following TurboTax information to learn more about self-employment tax:

 

What is the self-employment tax?