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dnoakes-nc
New Member

Filing single self employed income (5800) less than standard deduction how come still asked to pay $800 in federal tax

My income is minimal self employed less than standard deduction for single filer but owing over 800 in federal tax don’t understand using turbo tax premier 

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xmasbaby0
Level 15

Filing single self employed income (5800) less than standard deduction how come still asked to pay $800 in federal tax

When you have earnings from being self-employed you have to pay the 15.3% self-employment tax for Social Security and Medicare.  If you worked for an employer and received a W-2 then the employer would pay half of that and the other part would be withheld from your paycheck.  Since you do not work for an employer, you pay all of it yourself.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

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2 Replies
xmasbaby0
Level 15

Filing single self employed income (5800) less than standard deduction how come still asked to pay $800 in federal tax

When you have earnings from being self-employed you have to pay the 15.3% self-employment tax for Social Security and Medicare.  If you worked for an employer and received a W-2 then the employer would pay half of that and the other part would be withheld from your paycheck.  Since you do not work for an employer, you pay all of it yourself.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
VolvoGirl
Level 15

Filing single self employed income (5800) less than standard deduction how come still asked to pay $800 in federal tax

The SE self employment tax is in Addition to any regular income tax on your income which in your case would be zero.  The regular income tax is on line 44.  The self employment tax is on line 57, much later.
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