Anyone here a tax whiz?

i tried calling irs ask them directly, wait time on phone great.

self employed person, need understand owe in income tax , self employment tax. please let me know if i've got right.

paychecks year 2012: $30,000

1. federal income tax:

standard deduction: $5,950
personal exemption: $3,800

income taxed federally: $20,250.

2. self employment tax:

92.35% x $30,000 = $27,705
business expenses = $5,950 (standard deduction)

income taxed self employment tax: $21,755.

13.3% = $2,893 self employment tax (social security , medicare)

then... amend part 1:

0.5 x $2,893 = $1,446.50

$1,446.50 further deduction federal income tax.

new total federally taxed: $18,803.50

$2,396 owed in federal income tax.

$2,893 self employment tax.

total: $5,289. effective total tax rate: 17.6%.

right?

thanks!

 

you should ask tax professional.

 

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