Greetings,
My wife and I are filing jointly, but I did not make any income. I finished school and am writing a book, so no income from me.
Her taxable income came out to $50,571, but TT says we owe $8630, federally.
However, according to the tax bracket site:
| If taxable income is over: | but not over: | the tax is: |
| $20,550 | $83,550 | $2,055 plus 12% of the amount over $20,550 |
My math is: $50,571-$20,550=$30,021, then multiply by 0.12 = $3,602.52. Add $2055=$5,657.52
That's a difference of $8,630 (what TT says I owe) - $5,657.52 (tax bracket calculations) =$2,972.48 difference NOT in my favor.
We don't really have investments, or income from any other source. I don't know what I am missing!
Thanks for any assistance!
-Colin
Your question was posted from Self-Employed--which suggests that someone needs to pay self-employment tax on top of "ordinary" income tax. When you are self-employed you have to pay your own Social Security and Medicare, since it has not been withheld by an employer, and no employer paid the employer portion.
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/
Was all of her income from self-employment? If so you have to also factor in the Self Employment taxes on her net income. SE taxes are separate from Federal Income Taxes.
Your question was posted from Self-Employed--which suggests that someone needs to pay self-employment tax on top of "ordinary" income tax. When you are self-employed you have to pay your own Social Security and Medicare, since it has not been withheld by an employer, and no employer paid the employer portion.
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/