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I made 8927 why do I have to pay 1177 when I took the 12000 Standard deduction?

 
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Ashby
New Member

I made 8927 why do I have to pay 1177 when I took the 12000 Standard deduction?

It's your self-employment (SE) tax. The standard deduction allows you to not owe any "income" tax, but the SE tax which is really your FICA taxes, is not covered by the standard deduction.

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2 Replies
Ashby
New Member

I made 8927 why do I have to pay 1177 when I took the 12000 Standard deduction?

It's your self-employment (SE) tax. The standard deduction allows you to not owe any "income" tax, but the SE tax which is really your FICA taxes, is not covered by the standard deduction.

I made 8927 why do I have to pay 1177 when I took the 12000 Standard deduction?

So what does SE mean?

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