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
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.
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.