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Level 2
posted Sep 27, 2023 1:47:40 PM

deductions

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

0 2 615
2 Replies
Level 3
Sep 27, 2023 1:49:49 PM

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. 

 

 

Level 15
Sep 27, 2023 1:55:08 PM

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