Skip to main content
February 21, 2025
Question

why is my taxable income only $2532 but the tax rate as high as 162.4%?

  • February 21, 2025
  • 2 replies
  • 0 views
is your system calculated right ?

    2 replies

    February 21, 2025

    Can you provide more info on what types of income you have?

     

    Without knowing what type of income you have, one scenario could be that you are self-employed and took a self-employed health insurance deduction which lowered your taxable income but does not affect your self-employment taxes.  This would leave you paying the 15.3% SE taxes on the amount of health insurance you deducted.  So if you deducted $12,000 in insurance premiums, that would still leave you with $1,836 in SE taxes. 

     

    If you are not self-employed, then please respond with what types of income you have and a little more detail. 

    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
    SteamTrain
    Employee
    February 21, 2025

    Already answered multiple times....at least 4 repeat posts so far covering the same thing.

    ____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*