Hi, i am self employed and have an adjusted income of $38,500, i have paid $4000 in est taxes and i still owe $4800 fed and $1600 state, is that correct?

[Hal_Al · Accepted solution]

Yes. As self employed person you have to pay both the employer and employee portions of FICA (social security & medicare tax), in the form of "Self Employment Tax" (SET). This is in addition to the income tax you owe.

SET = 15.3% x 38,500 = $5891. That's in addition to the federal income tax (about $3765 for a single person)

[fino]

Thank you vey much for your answer, it seems a lot but i feel better knowing its correct