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I'm self employed and just got my tax returns done.

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I'm self employed and just...
I'm self employed and just got my tax returns done for 2015. Business wasn't good that year for me, I only worked 8 months. I grossed $78,000 on the 1099 and I had around 48,000 for expenses, leaving me a net of $30,000. I didn't file quarterly taxes, which I'm supposed to but I owe the IRS $7,149.00. Does this amount sound about right? It looks like I owe too much for such a small gross amount I made for the year. Is there any way I can owe less and still clear $30,000?
Submitted: 2 years ago.Category: Tax
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Answered in 11 minutes by:
3/3/2016
Tax Professional: Tax.appeal.168, Tax Accountant replied 2 years ago
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 4,641
Experience: 3+ decades of varied tax industry exp. Tax Biz owner
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No, that amount sounds about right. I think you are overlooking the self-employment portion of taxes. As a self-employed individual, you are responsible for paying self employment tax, as well as be taxed on your regular income. Generally, the amount subject to self-employment tax is 92.35% of your net earnings from self-employment. If your filing status is single, you are in the 25% tax bracket. Refer to the following links for tax brackets.

As for owing less, you would have to increase your tax deductions or claim credits that are applicable to you. Legitimately, there is not a way to owe less unless you have the deductions.

Let me know if I can be of further assistance to you regarding this matter. If all is clear, a positive rating of 3 or more stars is appreciated so that I can receive credit for assisting you.

http://www.forbes.com/sites/kellyphillipserb/2014/10/30/irs-announces-2015-tax-brackets-standard-deduction-amounts-and-more/#5657ef306f71

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Tax Professional: Tax.appeal.168, Tax Accountant replied 2 years ago

On a different note, I just noticed your username. I actually have the 45 RPM vinyl record by Falco. I love that song. I just have to mention that to you.

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