Why does my taxable income show zero, yet I still owe federal taxes?

Forum|Forum|2 years ago
April 11, 2024
1 reply
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The AGI does show a positive number, but I thought that federal tax was calculated using Taxable Income. I also do consulting on the side, for which I did not pay any estimated taxes, so perhaps that's affecting my federal taxes? I have a little W2 income and I also have another side business that showed a loss this year that exceeded my W2 income.

TurboTax Online

Best answer by DoninGA

@achiang0228 wrote:

What is the tax rate used to calculate social security and medicare?

The SE taxes are calculated on 92.35% of your net self-employment income using a tax rate of 15.3%

xmasbaby0

Employee

Sounds like you have self-employment tax for the consulting income. That is for Social Security and Medicare.

You have self-employment income for which you will pay self-employment tax for Social Security and Medicare. You will need to use online Premium software or any version of the CD/download so that you can prepare a Schedule C for your business expenses.

https://ttlc.intuit.com/questions/2926899-how-does-my-side-job-affect-my-taxes

https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-1099-nec/1099-nec/L5qTsBiSe_US_en_US

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

https://blog.turbotax.intuit.com/self-employed/self-employed-tax-deductions-

calculator-2021-2022-50907/

https://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs

https://turbotax.intuit.com/tax-tools/calculators/self-employed/

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**