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gus4113
Level 2

TaxCaster 2021 seems inaccurate.

Hello,

 

Taxcaster is showing a roughly $540 tax balance due with $13,500 net self-employment income, and the $1,400 stimulus for 2021. This seems far lower than what I had estimated (~$2,000). I'm single, mid-30s, with no dependents.

 

In the summary I see ~1,900 in federal taxes minus ~$1370 in credits.

 

I also run this through TurboTax 2021, and got an even lower estimate of $250 due, with possibly slightly lower net income.

 

So I guess my question is, are these at all accurate estimates?

1 Best answer

Accepted Solutions
Critter-3
Level 15

TaxCaster 2021 seems inaccurate.

Did you get the $1400 stimulus in advance ?   If so you do not get it again on the return.  

 

And the EIC has been raised considerably this year ... that is probably what has you stumped.

 

The tool is correct ... used your numbers : 

 

1.jpg

View solution in original post

3 Replies
Critter-3
Level 15

TaxCaster 2021 seems inaccurate.

Did you get the $1400 stimulus in advance ?   If so you do not get it again on the return.  

 

And the EIC has been raised considerably this year ... that is probably what has you stumped.

 

The tool is correct ... used your numbers : 

 

1.jpg

View solution in original post

rjs
Level 15
Level 15

TaxCaster 2021 seems inaccurate.

If $13,500 net self-employment income is your only income for the year, your standard deduction of $12,550 wipes out most of your income. You also get a deduction for half of your self-employment tax, and you might have a small QBI deduction, so you end up with no taxable income. Look at the summary that Critter-3 posted. Note that is shows taxable income of $0.00. The only tax you are paying is self-employment tax. That's the $1,900 of federal tax. And a large part of that gets eliminated by the Earned Income Credit (EIC). That's what the $1,370 of credits is.

 

gus4113
Level 2

TaxCaster 2021 seems inaccurate.

This makes sense. Thank you!

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