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ivyloveevans-gma
Returning Member

My Taxable Income is $1634, why is my Tax Liability $1643? I'm self employed so using the 15.3% for self employed shouldn't I owe $251.38 if my Taxable Income is $1634?

My total income is $14982, deductions is $13348, Taxable income is $1634, Blended tax rate is 100.6%, and Tax liability is $1643. I'm confused where the $1643 came from
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1 Reply

My Taxable Income is $1634, why is my Tax Liability $1643? I'm self employed so using the 15.3% for self employed shouldn't I owe $251.38 if my Taxable Income is $1634?

The Self-Employment tax (schedule 2, line 4) on your SE Income is likely causing the screwy % number.  The SE tax is assessed on your self-employment gain before your taxable income is reduced by your personal tax deductions.   

 

The 15.2% SE tax assessed should show up on line 4 of the Schedule 2, and is calculated based on the values shown on your Schedule SE.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

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