deductions

Forum|Forum|2 years ago
September 27, 2023
2 replies
2 views

can I use the standard deduction if Im self employed and made under 13,000

Ask the Experts - Extension - Sept 2023

user17581364628

Level 5

Hi @watttlyirs2021,

You can still use Standard deduction if you made under $13,000. Inputting your expenses will further decrease your self-employment tax liability, since your self-employment taxes is calculated on your net profit; your taxable income is calculated after your standard/itemized deduction.

DoninGA

Level 15

The Standard Deduction is based on your Filing Status and if your itemized deductions on Schedule A are less than the Standard Deduction for your filing status. It is not dependent on whether or not your are reporting on Self-Employment Income and Expenses on Schedule C.

Standard deductions for 2022

Single - $12,950 add $1,750 if age 65 or older
Married Filing Separately - $12,950 add $1,400 if age 65 or older
Married Filing Jointly - $25,900 add $1,400 for each spouse age 65 or older
Head of Household - $19,400 add $1,750 if age 65 or older