I am filing married and jointly and my wife made $8,933 in social security benefits while I made $19,000 as a newspaper carrier (self employed) with a mileage deduction for the route my profit was $13000. Do I still owe the self employment tax?

ANSWER

The BIDaWIZ Team's Answer:

You usually must pay self-employment tax if you had net earnings from self-employment of $400 or more. Given that you've earned $13,000 in business income, you'll likely have to pay at least 13.3% in self employment taxes. However, you can reduce your federal tax liability by claiming the earned income credit.