I was self-employed for 2 months of 2016. I haven't paid taxes on the $9,975 I made. TurboTax is showing that we owe $2,500 more when this is included. Is this correct?

[smithburger-matt]

Filing: Married Jointly

Other income (W2): $76,523.00

[MinhT · Accepted solution]

This looks correct.

Income reported on form 1099-MISC is self=employment income. On this income, you have to pay self-employment tax at the rate of 15.3% in addition to regular income tax at your tax bracket.

[smithburger-matt]

Does TurboTax automatically handle the deduction from the self-employment tax?

[MinhT]

Yes, TurboTax integrates the deduction in the calculation of your self-employment tax due, prepares Schedule SE and includes it in your return.

[smithburger-matt]

Thanks for your help!