taxable rate

[terimac4]

Question: I am confused as my taxable income is in the 12% tax rate but I am being charged more. Why is that? I am being charged 16% for my federal taxes. Last year I was charged 15%. I am filing married jointly.

[RobertB4444]

It's impossible to say without reviewing your tax return.  If you had any self employment income then there would be self-employment taxes.  There may also be interest or penalties.  I would recommend comparing your return to last year's and figuring out where the differences are before you file.

@terimac4 

[terimac4]

I took into account the self employment taxes and a small penalty, but my taxable income falls within the 12% and my tax is 15%. I just don't get it.

[DawnC]

Self-employment tax is in addition to any ordinary income tax you owe.   Do you have Schedule 2 in your tax return?   Look on line 4 - If there is an amount, you have self-employment tax.  

[terimac4]

Yes, I am, but with the Self Employment Tax, I should be paying about $1000 less, since I received a deduction of 1/2 the SE tax. So it still doesn't come out correctly.

[ThomasM125]

For your self-employment income, you pay income tax plus self-employment tax. The self-employment tax would be about 15% of your self-employment income. You can subtract half of that tax from your income, but you then multiply the net taxable income by your income tax percentage to calculate your income tax. Then you would add both taxes together to get your total tax. Even if your marginal tax rate is 12%, your affective tax rate could be up to 26% on just $10,000 of self-employment income.