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landr001
New Member

Why didn't the standard deduction reduce how much I owe the IRS?

My income was roughly 27,000 including W2 and 1099-MISC. The federal tax due was $2,356 all along. When we got to the part where it applied the standard deduction, nothing changed... It didn't change my taxable income...
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3 Replies

Why didn't the standard deduction reduce how much I owe the IRS?

The standard deduction is applied early on so it's always been reflected in your refund or tax owed.  There's no later point where it's applied, the later screen is just showing you that you are taking the standard deduction and the amount of  it.

Why didn't the standard deduction reduce how much I owe the IRS?

You also owe the self employment tax on the 1099Misc income in addition to any regular income tax on your total income.

 

 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.  

landr001
New Member

Why didn't the standard deduction reduce how much I owe the IRS?

makes sense. Thank you. 

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