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hanashin
New Member

My total income this year was less than the standard deduction amount of $12000, but after entering all my info, TurboTax says I owe $711. Could it be wrong?

 
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My total income this year was less than the standard deduction amount of $12000, but after entering all my info, TurboTax says I owe $711. Could it be wrong?

Self-employment taxes are calculated separately. They are 15.3% of your income from self-employment. They are only reduced by business expenses which decrease your profit.

 The standard deduction does not decrease your self-employment tax, it will, however, reduce your regular income tax on your total income including income from self-employment.  If you look at your Schedule 4 you will see the Self-Employment tax reported on line 57.  It is computed on Schedule SE then appears on line 14 of your 1040.

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3 Replies

My total income this year was less than the standard deduction amount of $12000, but after entering all my info, TurboTax says I owe $711. Could it be wrong?

Was any of the income self-employment income?
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
hanashin
New Member

My total income this year was less than the standard deduction amount of $12000, but after entering all my info, TurboTax says I owe $711. Could it be wrong?

Yes most of it was

My total income this year was less than the standard deduction amount of $12000, but after entering all my info, TurboTax says I owe $711. Could it be wrong?

Self-employment taxes are calculated separately. They are 15.3% of your income from self-employment. They are only reduced by business expenses which decrease your profit.

 The standard deduction does not decrease your self-employment tax, it will, however, reduce your regular income tax on your total income including income from self-employment.  If you look at your Schedule 4 you will see the Self-Employment tax reported on line 57.  It is computed on Schedule SE then appears on line 14 of your 1040.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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