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child tax credit doesn't remove self-employment tax?

LADryver

Active Member
I have done some guesses about 2019 taxes, to get an idea of how much I might owe.
I plugged-in my gross pay and deductions onto Schedule C, and I end-up with a small profit (of course).
I plug that "net profit" into schedule SE, and it produces a Self-Employment Tax of about 14% of that profit.

Back on my Form 1040, I add my small income to my wife's W-2 income; then deduct the Standard Deduction ($24k for married); then find the tax from the table. But when I deduct the Child Tax Credit, I get a negative number, so I'm supposed to write "-0-" (zero)... so we pay no federal taxes at all (that's a relief!).

But... below that, I'm supposed to copy-in the self-employment tax from Schedule SE. So, it looks to me like the Child Tax Credit counts against tax on net income (W-2 or 1099), even to the point that we won't pay any income tax at all... but the Child Tax Credit does NOT count against the Self-Employment Tax from Schedule SE?

If so, it looks like no matter how small your income is, you will always owe 14% of your Net profit from driving Uber/Lyft (income beyond expenses).
The Self Employment Tax is your Social Security contribution. It gets owed regardless.
 
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