Blended Tax Rate

Forum|Forum|2 years ago
April 15, 2024
1 reply
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I did my taxes with Premium, after expenses & deductions my taxable income was $5,227. The blended tax rate was 66.2%. In the breakdown it said it was self employment tax making up 99% of the tax rate. Why is my blended rate so high on so little?

Not A Product Question

HaydenSAuthor

Any other self employment tax calculated puts it at 846$ owed, but turbotax claims I owe $2947 in "self employed tax" in addition to the 10% income tax rate of 523$

SusanY1

The self-employment tax isn't calculated on your taxable income (which has had your standard or itemized deductions removed from it). Instead, it is calculated on your net income from self-employment (your profit from that activity). You will find that number on Line 3 of Schedule 1.

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