I am an independent contractor making approximately $9,000 in 2018. Why do I owe $150 in federal income taxes when the standard deduction is $12,000?

[-1sonjmk]

The profile says I am taking the standard deduction but if I were I would be not paying anything in taxes.

[rjs · Accepted solution]

The $150 is not income tax. It's self-employment tax. As an independent contractor you have to pay self-employment tax even if you don't owe any income tax. The standard deduction does not apply to self-employment tax. The self-employment tax is calculated on Schedule SE and appears on Schedule 4 line 57.

However, the self-employment tax on $9,000 should be about $1,270. If you only owe $150 you must have made estimated tax payments, or you have some credits (possibly EIC) that reduce the total tax that you owe.