1098-t Refund

[Rickmcdaniel99]

My son earned only $3,100 and owes $197.00 in additional taxes, however, he has over $16,000 in Deductions, including the $4,000 Tuition credit, but this does not reduce his taxes owed, why?

[KarenM90]

It depends.  Was the $3100 your son earned self-employment income, paid on a 1099-Misc or similar income for which he didn't receive a W2?

If so, even though he had other deductions, he will still owe the self-employment tax. 

Self-employment tax is the "equivalent" of social security tax that is withheld from a W2 employee's payroll.  You owe those amounts regardless of how much (or how little) you make.

Here is a Help Article that will explain more details:  Self Employment Tax. Why am I paying it?

[NCperson]

can you be more specific on how your son earned the $3100?  was that on a W-2? was that dividends? was that on a 1099C.  Where they lottery winnings (it happens!) What was the job?

What are the $16,000 of deductions? what categories?  that sounds quite unusual. 

and what do you mean the $4000 tuition credit? are you talking about AOTC? if he is your dependent, he is not eligible for AOTC.

is he your dependent?