7 or 13?

[WhatMoney]

Exactly, and we are talking about his taxable income on AGI, he gets to deduct half, so he should just be figuring on half of the 15%
Woe, a self employeed person does not pay double. This half gets a deduction on taxes, so it is moot. (Changed this, was getting wordy)
But, back to the OP, he is paying too much in taxes. Looks like almost 50%.

Are you self-employed and do your own taxes? Do you only pay 7.65% for your SE tax? I don't think so.

An example...

Say AGI is $20,000.
Therefore SE tax is 15.3%, or $3,060.

Now you can deduct 1/2 of the 3,060 from your AGI for income tax ONLY. So your new adjusted AGI is $18,470. The SE tax deduction has only reduced your AGI by $1,530. You only save your income tax rate times $1530 on your income tax, which would be around $190 in income tax. You still pay $3,060 SE tax PLUS your income tax based on $18,470 income (or whatever it is after deductions for a single person).

The SE deduction on AGI is a deduction, NOT a tax credit. The self-employed pay 15.3% because their is no employer to pick up the other half of the SE tax. The SE AGI deduction on income tax is a neglibible tax savings. As a sole proprietor for 15 years I don't think I overpaid my taxes for 15 years, or that Turbotax doesn't know how to calculate the tax laws.

BTW, I checked on possible Earned Income Credit and it appears the OP does not qualify for any EIC either. His AGI or EI would need to be less than $12,590 to qualify for any Earned Income Credit for 2007.

His quarterly payments including State taxes for Oregon, seem about right to me.

[fltoo]

Yes and accountant does taxes
AGI was 20, thought it was 11000

[fltoo]

Yes...I saw the doctor last month about a spot of psorisis and for $125 and 2 minutes of his time he said "just keep using the cream".

On another note...my worst fear is that I could be forced into selling off my business and then what? The good thing is that I don't own any of my vendors anything and keep current on all of my net 30 accounts with them. I've never used the CC for business but I don't know if that has a bearing on anything. Thanks for all the replies!

Don't know Andy, I got mixed answers about business and then I never pursued it any further. Check with a few attorneys and see what they say.

Seems illogical they would want you to sell, but then some on here say, they want you to earn more. I didn't have any tools of the trade exemptions here.
Check some threads for people who have had businesses and see if they had to sell. Or, maybe someone who knows for sure will respond.

The best of luck.