I only made a total income of $4504 in 2017. All of that $4504 was earned being self-employed. I am filing using a 1099-MISC. My standard deduction is $6350. If I understand it correctly, a standard deduction is supposed to be the amount of "tax-free income" that you can claim. So why is it that even though I made less that my standard deduction, I still have to pay anything? The standard deduction should apply to all of my income should it not?
You'll need to sign in or create an account to connect with an expert.
This would be true if your $4,504 of income was W-2 income and not self-employed income. On a W-2, your employer would pay for 1/2 of your social security taxes owed.
Since you are your own employer, you have to pay your 1/2 of self-employment taxes (SE) on your self-employed earnings of $400 or more. The tax is figured on schedule SE and you do get to deduct part of it (TurboTax calculates it for you).
https://ttlc.intuit.com/questions/1900698-what-is-the-self-employment-tax
https://ttlc.intuit.com/questions/1901205-where-do-i-find-schedule-se
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
ecenurcosar
New Member
sherryburke1206
New Member
ajv28
New Member
Kaybru20
New Member
Kaybru20
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.