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TurboTax results extremely different than tax bracket calculations

Forum|Forum|3 years ago
March 12, 2023
2 replies
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Greetings,

My wife and I are filing jointly, but I did not make any income. I finished school and am writing a book, so no income from me.

Her taxable income came out to $50,571, but TT says we owe $8630, federally.

However, according to the tax bracket site:

If taxable income is over:

but not over:

the tax is:

$20,550

$83,550

$2,055 plus 12% of the amount over $20,550

My math is: $50,571-$20,550=$30,021, then multiply by 0.12 = $3,602.52. Add $2055=$5,657.52

That's a difference of $8,630 (what TT says I owe) - $5,657.52 (tax bracket calculations) =$2,972.48 difference NOT in my favor.

We don't really have investments, or income from any other source. I don't know what I am missing!

Thanks for any assistance!

-Colin

TurboTax Self Employed Online

Best answer by xmasbaby0

Your question was posted from Self-Employed--which suggests that someone needs to pay self-employment tax on top of "ordinary" income tax. When you are self-employed you have to pay your own Social Security and Medicare, since it has not been withheld by an employer, and no employer paid the employer portion.

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://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/

DoninGA

Was all of her income from self-employment? If so you have to also factor in the Self Employment taxes on her net income. SE taxes are separate from Federal Income Taxes.

C

crazy4youthAuthor

Yeah, she is self-employed.

KrisD15

Self-Employment tax is listed on Schedule 2 line 4.

@crazy4youth

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xmasbaby0Answer