I was self-employed for 2 months of 2016. I haven't paid taxes on the $9,975 I made. TurboTax is showing that we owe $2,500 more when this is included. Is this correct?

smithburger-matt · ‎May 31, 2019

Filing: Married Jointly

Other income (W2): $76,523.00

MinhT · ‎May 31, 2019

This looks correct.

Income reported on form 1099-MISC is self=employment income. On this income, you have to pay self-employment tax at the rate of 15.3% in addition to regular income tax at your tax bracket.

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MinhT · ‎May 31, 2019

This looks correct.

Income reported on form 1099-MISC is self=employment income. On this income, you have to pay self-employment tax at the rate of 15.3% in addition to regular income tax at your tax bracket.

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smithburger-matt · ‎May 31, 2019

Does TurboTax automatically handle the deduction from the self-employment tax?

MinhT · ‎May 31, 2019

Yes, TurboTax integrates the deduction in the calculation of your self-employment tax due, prepares Schedule SE and includes it in your return.

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smithburger-matt · ‎May 31, 2019

Thanks for your help!

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I was self-employed for 2 months of 2016. I haven't paid taxes on the $9,975 I made. TurboTax is showing that we owe $2,500 more when this is included. Is this correct?