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mczak4
Returning Member

if my taxable income is only 14,443.00. Why would my Federal Taxes be due 6,165?

 
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8 Replies

if my taxable income is only 14,443.00. Why would my Federal Taxes be due 6,165?

@mczak4 -  please provide more information:

 

1) what is on Line 11 and Line 15 of Form 1040?

2) on what line do you see $6165?

3) what is on Line 16 and Line 22 of Form 1040? 

4) what is on Lines 34 and 37 of Form 1040?

 

 

if my taxable income is only 14,443.00. Why would my Federal Taxes be due 6,165?

This is just a guess, but is it self-employment income?  If so, about $2100 SE tax is due.  The remaining $4000 might be related to an (improperly claimed) Child Tax Credit or Stimulus.

if my taxable income is only 14,443.00. Why would my Federal Taxes be due 6,165?

@SweetieJean - I thought about the SE tax also.

 

But on the Child Tax Credit, if you got the Advance, you don't have to return it at that income level. Similarly, no stimulus needs to be returned (line 30 can't be less than zero).

 

Also, at that income level, there is likely EITC credits.

 

I was stumped as well and wonder if the OP is looking at the wrong line which is why I asked on which line number he sees the $6165 - it may not be taxes owed - could be the refund!!!!. 

if my taxable income is only 14,443.00. Why would my Federal Taxes be due 6,165?

@SweetieJean - my new bet..... $6165 is the "payments" on Line 33 🤔

 

that is plausible given the credits afforded at that income level. 

 

we'll see.......

mczak4
Returning Member

if my taxable income is only 14,443.00. Why would my Federal Taxes be due 6,165?

1) what is on Line 11 and Line 15 of Form 1040?     Line 11 $30,576. and Line 15 $14,433.

2) on what line do you see $6165?    Line 37

3) what is on Line 16 and Line 22 of Form 1040?    Line 16 $1,526 and Line 22 $1,526

4) what is on Lines 34 and 37 of Form 1040?   Line 34 0 and Line 37 $6,165.

 

mczak4
Returning Member

if my taxable income is only 14,443.00. Why would my Federal Taxes be due 6,165?

This is self-employment income, and there is no Child Tax Credit 

if my taxable income is only 14,443.00. Why would my Federal Taxes be due 6,165?

@mczak4 - @SweetieJean appears to be right...... 

 

were you self employed and your income is reported on a 1099-NEC form?

 

There are two types of taxes on the income tax form

 

1) "income" tax which is the $1526 on lines 22.

2) "self employment" tax which is on line 23, which I did not ask you for.  This represents the Social Security and Medicare tax that people who receive a W-2 already have withheld from their paychecks.  But if you are self employed there is no "paycheck" to withhold it from. 

3) If your 1099-NEC income was the whole $30,576, then the self employment tax is around $4648.  Add that to the $1526 and you get $6,174, pretty close to the $6165 on your tax return.

 

make sense? 

if my taxable income is only 14,443.00. Why would my Federal Taxes be due 6,165?

What is on line 23?  You owe self employment tax on it.   If 30,576 is all from self employment you owe about 4,300 self employment tax on it in addition to any regular income tax.

 

You pay Self Employment tax (Scheduled SE) on a Net Profit of $400 or more on Schedule C.  You pay 15.3% SE tax on 92.35% of your Net Profit (If it is greater than $400).  The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.  So you get social security credit for it when you retire.  

 

The SE tax will be included in your tax due or reduce your refund.  It is on the 1040 Schedule 2 line 4 which goes to 1040 line 23.  The SE tax is in addition to your regular income tax on the net profit.  You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040 Schedule 1 line 15 which flows to 1040 line 10.

 

 

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