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Why is TurboTax lowering how much I owe?

After inputting the income, it comes to a page that says this:

"You can reduce your self-employment tax of $1,383 by entering your expenses.
This amount is included in your total tax due of $854."
Now I owe $854, but why? This is without any deductions but it seems TurboTax is adding a deduction. The $1,383 is how much I should owe based on the percentage of my income.
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4 Replies
KatrinaB48
Expert Alumni

Why is TurboTax lowering how much I owe?

Did you have other income reported on your tax return?

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Why is TurboTax lowering how much I owe?

@KatrinaB48no - this is the one and only income.

KatrinaB48
Expert Alumni

Why is TurboTax lowering how much I owe?

The amount of tax due is lower than the full amount of your self-employment tax because a portion of the self-employment tax payments is carried over to form 1040 and claimed as an adjustment to income. The precise amount depends on how much self-employment income you earn.

You can view your Form 1040 in TurboTax Online by clicking on the Tools tab on the left side menu. Then, selecting View Tax Summary in the pop-up screen. On the next screen that appears, look for the tab "Preview Form 1040."

In the TurboTax Desktop version, you can view Form 1040 by entering "Forms Mode", or by viewing the PDF through the Print Center.

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Why is TurboTax lowering how much I owe?

You must be showing some payments from withholding or did you make any estimated quarterly payments? Or qualified for some credits like the EIC.   You should see something on another line.  

 

You can preview the 1040 or print the whole return

https://ttlc.intuit.com/community/accessing/help/how-do-i-preview-my-turbotax-online-return-before-f...

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