Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Showing results for 
Search instead for 
Did you mean: 
New Member

Taxes seem really high given deductions and amount made

Made 19,205 as self employed via a 1099misc, I'm single, and am claiming ~1400 in business expenses. Turbo has me owing 2,995, which seems higher than it should be. Any input?
1 Reply
Level 15

Taxes seem really high given deductions and amount made

That can be right.  You only had $1,400 in expenses?  Leaving a Net Profit of 17,800?

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment.  You pay 15.3% SE tax on 92.35% of your Net Profit 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.  You do get to take off the 50% ER portion of the SE tax as an adjustment on line 27 of the 1040.  The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 line 57.  

The SE tax is in addition to your regular income tax on the net profit.

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.



Manage cookies