Is Sch C income taxed at a higher rate when individual also has non taxable SS disability income and LT Disability (also non taxable)through prior employer?

[dcarden811]

My AGI LIne 7 is 3570,

Total Income on Line 6 is 8204

Sch C 8204 gross, 4634 net

Non taxable income $30,000 combined

tax due is $655

[VolvoGirl · Accepted solution]

That is just the self employment tax on the $4,634.  You pay 15.3% of 92.35% of the net profit in additional to any regular income tax on it.  You don't have any regular income tax.

4,634 x .9235 = 4,279.50
4,279.50 x .153 = 654.77 Tax

[dcarden811]

Thank you for the prompt and thorough explanation.