SE Tax seems to be calculated on “Gross” income, and not “Net”, very concerned.
I filed my taxes today and was horrified at the results. My situation is this:
I used turbo tax to file using QBO to enter my numbers.
In 2017 my “gross” income, prior to business deductions was around $68,000. After deductions, this number came to $32,000. Then, taking the standard personal deduction for filing single, plus a few other personal deductions, my taxable income was about $22,000.
At $22,000, my tax bill was $8,500. That is 37.5%. By the time I pay rent, there is no way this is sustainable. I don’t care if that SE gets me more when I retire, I simply cannot afford it! I will be living on the street. What is wrong? I cannot pay this bill. And I cannot pay estimated taxes to pay next years bill as that would add $800/month to my budget just for taxes, that is more than my rent. I aced my college accounting class, have been using QBO for years and I’m quite savy. What is wrong!? Help!!!
I agree with you that the calculation seems to be incorrect. Unfortunately I am not able to give you tax advice. However, I recommend that you find a tax pro who can take a look at both your QuickBooks files and your tax returns to assess exactly what the issue is. We have an article that provides you with 3-4 resources on how to find an expert.
Good luck with everything.
You must be logged in to reply to this topic.
Not signed in?
Sign in to participate on our website!
315 Madison Avenue, 24th Floor
New York, NY 10017
Disclaimer: We spend hours researching and writing our articles and strive to provide accurate, up-to-date content. However, our research is meant to aid your own, and we are not acting as licensed professionals. We recommend that you consult with your own lawyer, accountant, or other licensed professional for relevant business decisions. Click here to see our full disclaimer.
Product or company names, logos, and trademarks referred to on this site belong to their respective owners.