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QuickBooks self-employment taxes?
I work from home, so I have to file my own taxes and do my own tax returns and all that fun stuff. I was told I should either use TurboTax, QuickBooks, or hire an accountant from H&R Block or somewhere similar. I chose Quickbooks.
This job has been more for side money until I can get a stable, full-time job, but I've made more than $400 on it so far so I have to pay taxes.
I entered my income for the last quarter, which totaled to $434 (very low, I know, but I've only been doing it here and there).
Now, when I go to the "Taxes" page, it says I'm overdue $313, and that amount is due now. This is really confusing me, because if my total income so far is a little over $400, how do I owe $313? That's almost my entire income.
I fiddled with TurboTax a bit last night, and it said I owe around $60-ish for taxes, but I found Quickbooks was more helpful at helping me understand exactly how to file my taxes and where to send it, and etc, which is why I'm using it instead of TurboTax.
Why is QuickBooks telling me I owe $313 when I've only made just over $400? I also entered a deductible for business materials, which was around $80. I pretty much put in all the amounts I can think of, but I'm confused as to why it's telling me I owe that amount. Can anyone help?
5 Answers
- troLv 77 years agoFavorite Answer
you certainly don't need a bookkeeping program to calculate your self employment tax, go to www.irs.gov and find Sch C where you report the income and Sch SE were you calculate the se tax
- JakeLv 77 years ago
There is an addition 15% self employment tax on monies earned as an independent contractor.
I don't get how that $434 is arrived at. I may be wrong, but if your years income is below the poverty level you may end up not paying any income tax.
- BobbieLv 77 years ago
And you probably really should find some good face to face professional at this time for some advice and guidance at this time and for this purpose.
Hope that you find the above enclosed information useful. 09/29/2014
- Cathi KLv 77 years ago
it could be something you did in the QuickBooks set up. QuickBooks is not a tax program.
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