☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 4, 2019 2:05:32 PM

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 

0 2 744
1 Best answer
Level 15
Jun 4, 2019 2:05:34 PM

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.

2 Replies
Level 15
Jun 4, 2019 2:05:34 PM

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.

Level 15
Jun 4, 2019 2:05:35 PM

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.