Why do I owe $2087 when my taxable income is $404?

[gymcone-gmail-co]

I'm self employed as a rideshare driver.

[Bsch4477]

What is the amount on line 23 of your 1040?

[FreddyBenelli]

Self-Employment Tax.

As a self-employed individual, you haven't had any Social Security or Medicare contributions withheld from your earnings throughout the year, so you owe it based on your Net Business Income.

[VolvoGirl]

@gymcone-gmail-co   What is your filing status?  Single?  Sounds like the Net Profit on your self employment is around $13,354?  You owe 15.3% SE tax on that.  But you don't owe any regular income tax.  

You pay 15.3% SE tax on 92.35% of your Net Profit (If it is 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 (FICA). So you get social security credit for it when you retire.

The SE tax is already included in your tax due or reduced your refund. It is on the 1040 Schedule 2 line 4 which goes to 1040 line 23. The SE tax is in addition to your regular income tax on the net profit.

[gymcone-gmail-co]

Thanks for the replies, I get it now.