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Hey I am not understanding somethings here- I made 14606$ in online sales this year and yet it says that my federal tax due is 2606$, what is going on, how can this be?

I am also applying standard deduction of 12000 this year and it still says federal tax due is over 2000$, is this some sort of a joke?
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Hey I am not understanding somethings here- I made 14606$ in online sales this year and yet it says that my federal tax due is 2606$, what is going on, how can this be?

You were self-employed.  That means you are subject to self-employment tax for Social Security and Medicare.

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

https://ttlc.intuit.com/questions/2903027-how-do-i-report-income-from-self-employment

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct


**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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3 Replies

Hey I am not understanding somethings here- I made 14606$ in online sales this year and yet it says that my federal tax due is 2606$, what is going on, how can this be?

You were self-employed.  That means you are subject to self-employment tax for Social Security and Medicare.

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

https://ttlc.intuit.com/questions/2903027-how-do-i-report-income-from-self-employment

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct


**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.**
rjs
Level 15
Level 15

Hey I am not understanding somethings here- I made 14606$ in online sales this year and yet it says that my federal tax due is 2606$, what is going on, how can this be?

The self-employment tax is calculated on your net self-employment income, without subtracting the $12,000 standard deduction. The standard deduction reduces your taxable income for income tax, but not for self-employment tax.
Anonymous
Not applicable

Hey I am not understanding somethings here- I made 14606$ in online sales this year and yet it says that my federal tax due is 2606$, what is going on, how can this be?

self employment tax alone on  $14606 is times .9235 times .153 = $2,064 

do no rush,  you could be entitled to a 20% QBI deduction. It's not ready yet  This will not reduce the Self-emp tax but could eliminate any regular income taxes.     if you had a tax liability last year and haven't paid estimates, you could be subject to penalties    

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