Personal Finance (Not Investing) • IRS disagrees with my submitted schedule SE.

Hi BHs,

I received a notice from IRS today. I went over the issue raised, and I think I was correct.

I had W2 income and 1099 income in 2023. My W2 income was higher than $160,200.

I used H&R block to calculate my taxes but did paper filing.

My net profit from schedule C (1099 income) was $92815.

I reported self-employment tax (line 12 on schedule SE) as $2486. 92814 x 0.9235 x 0.029= 2486. I believe that since I paid the maximum social security tax on my W2 income, I would only have to pay 2.9% medicare tax. H&R block did all the calculation, and I think it was correct.

IRS notices says the correct entry should $13114. (13114/85715=15.3%)

I don't see how I should be paying 15.3% on my 1099 income when I already paid the max social security tax on my W2 income.

What do you think? Did I miss anything?

I called the IRS number listed on the notice and of course I couldn't get a live person on the phone.

Thanks

Statistics: Posted by hmw — Mon Sep 30, 2024 4:38 pm — Replies 16 — Views 708

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