This is automatically applied. You will see this on Schedule 1 line 27 which will be included in the calculations for line 7 of your 1040.
This is not an item that you itemize to get, it is deducted from your income to arrive at your AGI before your standard or itemized deductions are entered.
This is automatically applied. You will see this on Schedule 1 line 27 which will be included in the calculations for line 7 of your 1040.
This is not an item that you itemize to get, it is deducted from your income to arrive at your AGI before your standard or itemized deductions are entered.
Okay, so I saw this, but when I added the income that is being taxed, the full amount was removed from my refund, not just 50%, which I thought was supposed to be the case.
No, the full amount is added to your taxes due. You will find this on Schedule 4 line 57. It's sort of a backwards thing. The SE is calculated then half of it is deducted from your AGI, so you are not paying income taxes on it, just Self Employment taxes which are the SS and Medicare taxes...15.3%. You are getting a deduction from your taxable income for the amount that an employer would paid for you if you were an employee.