I only made $3,597.65, how come I owe?

chrisitne cole · #1 (**permalink**) 03-23-2010, 03:44 PM

I have calculated my taxes...I was disabled 9.5 months in 2009.
I made $3,597.65, paid $118.00 Fed, $223.05 SS, $52.17 medicare, $39.57 Ca-SDI, and $14.00 State. With earned income credit of $273.00 I owe $187.00, with out earned income credit I owe $460.00.
How is it possible that I owe, when I made so little?

TaxGuru · #2 (**permalink**) 03-23-2010, 10:15 PM

I think something is wrong here, you are entitled both a standard deduction of $5,700 and a personal exemption of $3,650. This would result in Zero taxable income on your Federal Income Tax Return for 2009 based on your W-2 income of $3,597!!

Unless of course your income is subject to Self-Employment taxes, in which case you would be subject to 15.3% self-employment taxes! If you were not self-employed, I would recommend that you consult a tax professional because there seems to be an error in your calculation!

I don't think you should owe any federal income taxes at all!