Newbie Confused with Desktop Turbotax

[TBthere]

Thank you for your reply.

Which one form and line Can I learn the tax percentage of my income tax and self-employment tax?

[VolvoGirl]

You pay Self Employment tax (Scheduled SE) on a Net Profit of $400 or more on Schedule C in addition to regular income tax on it.   You pay 15.3% SE tax on 92.35% of your Net Profit (If it is greater than $400).  The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.  So you get social security credit for it when you retire.  

You are paying 15.3% for……

SS for employer 6.2% (up to 160,200 wages & profit)

SS for employee 6.2% (up to 160,200 wages & profit)

Medicare for employer 1.45% (on all wages & profit, no max)

Medicare for employee 1.45% (on all wages & profit, no max)

[TBthere]

My Gross Income is $65,462. Net Income is 13,728. 

I try to understand it is because I paid $41,692 to purchase a Tesla, but I use my Tesla Uber only earned 31,838, which is a loss of $9854 on Uber. Is the reason my Income Tax is 0? How much it will be if the Net Income is positive? How to calculate the percentage of the rate?

My Self-Employement is $1940. So, the percentage rate is 1940 ÷ 65,462 = 0.029 ≈ 0.03. My self-employment Tax rate is 3%. Or, 1940 ÷ 13728 = 0.141≈0.14 it is 14%? 

[VolvoGirl]

I don't know what that screenshot is from.  This first year you probably should go to a local accountant or tax place in person to ask questions and they can explain it to you.  

[VolvoGirl]

Your net income is too low to have any personal income tax.  The self employment tax is the Net Profit 13,728 x .9235 = 12,678.    Then 12,678 x .153 = $1,940 self employment tax.

I don't understand what you are saying about the Tesla only earned 31,838?  How many businesses do you have?  Isn't it all on one Schedule C?  

[TBthere]

The screenshot comes from My Turbotax Desktop.

The reason why I purchased TurboTax is because I want, I need to learn how to do Tax by myself. That is why I rather suffer lots of pain from it. 

Thank you for your valuable time!

[VolvoGirl]

Sorry I know it's from your Turbo Tax Desktop.  But what page?  You needed to include more of the screen to show what you are looking at.

[MonikaK1]

To better understand the source of your self-employment tax and why you had no income tax, I suggest you review the Schedule C's that TurboTax prepared from your entries regarding your businesses. Are you arriving at an assumed net loss on the Uber activity by deducting the cost of the Tesla purchase from your gross receipts? Do you have three Schedule C activities?

As @VolvoGirl noted, the self-employment tax on your return is based on the net profit shown in the second column of your screenshot.

See this TurboTax tips article and this one for more information about Schedule C.

@TBthere 

[TBthere]

Hi, VolvoGirl:

Thank you for the calculating formula advice! It makes me understand much easier!!

I purchased Tesla and only do Uber in 2023. So, My Uber income is 31,838.