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ruch102
New Member

Hi. My household wage was 22 000$. Me,wife and 1 dependant, filing jointly. Why Terbotax shows tax due: 1480$ ? My income is less than standard dedaction.

 
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7 Replies

Hi. My household wage was 22 000$. Me,wife and 1 dependant, filing jointly. Why Terbotax shows tax due: 1480$ ? My income is less than standard dedaction.

It depends the type of income entered.  If you are self-employed and have a net income from the self-employment then you will owe Self-Employment taxes on the income.  The SE taxes are 15.3% of the SE income.

 

 

ruch102
New Member

Hi. My household wage was 22 000$. Me,wife and 1 dependant, filing jointly. Why Terbotax shows tax due: 1480$ ? My income is less than standard dedaction.

After investigation I found: fed tax is 0. But “other tax” is 1400$. Seems like this amount for SSN and Medicare . But our income for whole household is way low to pay “other tax”, isn’t? Could you please clarify ? Thank you.

Hi. My household wage was 22 000$. Me,wife and 1 dependant, filing jointly. Why Terbotax shows tax due: 1480$ ? My income is less than standard dedaction.

If the "Other Tax" is referring to the Social Security taxes withheld and the Medicare taxes withheld on your W-2 as shown in boxes 4 and 6 of the W-2, that amount shown is NOT entered on your tax return as taxes owed.  It is an informational amount only.

If your Total Income is less than the Standard Deduction for your filing status you will not have any taxes owed and will receive back all the federal income taxes you had withheld in box 2 of the W-2 as a tax refund.

 

ruch102
New Member

Hi. My household wage was 22 000$. Me,wife and 1 dependant, filing jointly. Why Terbotax shows tax due: 1480$ ? My income is less than standard dedaction.

Thank you. Forgot to mention I have earned income on 1099(NEIC)  form.

Hi. My household wage was 22 000$. Me,wife and 1 dependant, filing jointly. Why Terbotax shows tax due: 1480$ ? My income is less than standard dedaction.


@ruch102 wrote:

Thank you. Forgot to mention I have earned income on 1099(NEIC)  form.


The Form 1099-NEC received indicates that you had income from self-employment.  So that takes you back to my original response about the possibility of having Self-Employment taxes owed.

DMarkM1
Expert Alumni

Hi. My household wage was 22 000$. Me,wife and 1 dependant, filing jointly. Why Terbotax shows tax due: 1480$ ? My income is less than standard dedaction.

We can't see your return in this forum, however, the form 1099-NEC is self-employment income subject to, as DoninGa suggested, self-employment taxes.  So while there is no federal income taxes due, as a self-employed taxpayer, social security and medicare taxes would still be owed.  

 

For taxpayers with typical W2 job income, social security and medicare taxes are withheld and paid through the employer during the year.  As a self-employed taxpayer you are the employer and the employee and therefore need to pay the social security and medicare taxes.  This can be and typically should be done through quarterly estimated tax payments during the year.  However, if those quarterly payments were not enough or were not done at all, then those "self-employment" taxes are due with the tax return. 

 

When you complete your return in TurboTax you will be asked in the "Other Tax Situations" section if you want to prepare quarterly estimated tax forms.  You can elect to complete the 1040-ES on which you will estimate your income for 2024. That estimate will be used to create payment vouchers to help you make quarterly tax payments.  

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ruch102
New Member

Hi. My household wage was 22 000$. Me,wife and 1 dependant, filing jointly. Why Terbotax shows tax due: 1480$ ? My income is less than standard dedaction.

Thank you. I choose instead of “self-employment “ , “ income that should’ve been reported on a W-2”

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