Question

Tax you owe

Forum|Forum|6 years ago
March 2, 2020
2 replies
0 views

The tax summary says that I have zero taxable income but Turbo Tax calculates a tax due of $721. Total income was only $14,962 and I got the standard deduction of $12,200 for a single filer. I don't understand how there could be tax due.

N

NCPERSON1

were you self-employed? there is the 15.3 self-employment tax - there is no way out of that.

if the total income is $14,962 less the standard deduction of $12,200 would leave taxable income of $2762.... are you sure it's zero?

B

bfreemAuthor

Here is what the tax summary section looks like:

Your Total Income $10,727

Federal Deductions We Found For You $16,870

Your Taxable Income $0

Federal Credits We Found For You $244

Federal Taxes You Owe $1,340

Federal Taxes You Paid, Plus Certain Credits -$619

That leaves a tax due of $721. How can that be?

A

Anonymous

the 15.3% times 92.35% is only paid on the net self-employment-income not W-2 income. if you have such income 1/2 of this tax is a deduction in arriving at taxable income. we can't see your return so we are offering suggestions of why you owe taxes. the tax rate on your taxable income (as opposed to the S-E income is about 10% so there is something else increasing your taxes.

N

NCPERSON1

I am going to bet you have self-employment income.

There is a self-employment tax of 15.3% that you can't get out of. it represents the social security and medicare tax you and your employer would otherwise pay if you were an employee and not a 1099 contractor.

1) self-employment income = $8758

2) other income (W-2?) = 2,639

3) deduction for SE = ( $670)

total income = 10,727

the tax on #1 = 8758*.153 = 1340

and the deductions are on Schedule C, right?

again, just a guess..