 employment tax. This is the equivalent of like payroll taxes that come out of your W2. However, there are an employee and employer portion. When you work as an employee, you only pay through the W2, the employee portion, the employer pays like the equivalent in terms of social security and Medicare. So the IRS kind of sees you as a sole proprietor as the employee and employer of yourself with regards to social security and Medicare. So they basically charge you the employee and employer portion of social security and Medicare taxes on on your net income, in essence. So we'll get into this in more detail later. But general idea. Sorry about that. I almost choked to death there. But that's okay. I'm back. The general idea is that you've got your tax calculation down here, which is going to be pulled into page two. Now this is more complicated, obviously, because usually we don't have to deal with like payroll taxes, social security and Medicare with a W2 type of client, because although it's reported on the W2, it usually has already been taken care of by the employer. And it's just a reporting form. And we're dealing with the income tax, not these other taxes. But here, we'd have to deal with that. So if I go back to the form 1040, and I go to page two, you'll notice that we have the tax calculated calculation. But we also have these other taxes of that 2008 26. Not only that, but if I go back to that, that form, we also going to take half of that amount. And, and that's going to be a deductible portion. Why is it deductible? Because whenever they deal with the schedule C, they're trying to kind of use the schedule to mirror what happens in payroll taxes. And if you had an employee employer situation, the employer would have to pay their portion of the payroll taxes, but they would also get to deduct that portion. So you would think that this amount that I have to pay in payroll taxes, I would get to deduct it, which you would think would happen on the schedule C. But I can't deduct it on the schedule C, because the net income of the schedule C is the thing I use to calculate the payroll taxes. And that would end up in a circular reference. Therefore, we have to deduct that as an above the line deduction over here on the schedule one. So now we've got the schedule one deduction for the half of it that's included in here. And then I had the self employed health insurance. That's another kind of complication, but I'm not going to include that now. Then this is going to be included down here. And that pulls into page one. So now, if I go through this, I still got the 100,000 w two income, 20,000 of the net income pulled in from the schedule C. That makes sense for the total income of 120,000. But then I've got this messy above the line deduction of half of the self employment tax of one thousand four 13 to get me to the adjusted gross income here. And then we also have this qualified business income deduction, which is a relatively new deduction, which again is coming from this situation where they're trying to mirror what they did with some of the past through entities like a schedule S corporation and an LLC in the format of a of a sole proprietorship. And they just kind of clumped this this qualified business income deduction in place here. So we might talk about that calculation a little bit more later. It has some kind of wonky weird components to it, but obviously it's a significant amount. And so then and that finally gets us down to the taxable income. So if I was to mirror that and just try to say, Okay, what happened here? What happened here? I would say, Okay, well, the income if I go to the income line, I can recalculate the income statement, which you might not do in your little worksheet over here because you might have another worksheet that basically is the income statement. And we'll talk maybe more about that later. But if I say this was what did I say it was 30? I said it was how much did I say it was? I don't know 20. Let's say 30,000 minus 10,000. That's 300 minus 10,000 gets us to the 20,000. That's gonna pull over here. So now we're at 120,000. And then we've got the adjustments to income, which is going to be the tax. So it's self employment tax. We could recalculate it. But I'm not going to do that right now. I'm just going to rely on the software to calculate the tax, which is going to be the 2826. Let's actually do the tax first. That's going to be other taxes, self employment, employment tax 2826. And then the above the line deduction is going to be equal to that 2826 divided by two. And so that pulls into page one, I could recreate this and say, okay, there's the 120 minus half the self employment tax is 118 587. Does that make sense? Does that make sense? I don't know one. So 118 587. All right. And then we've got the standard deduction. Boom. And then you've got this qualified business income. Now we could have another worksheet to calculate that to kind of double check that. But I'm just going to rely on the software right now and say, okay, the software is coming up with 3717. So I'm going to say, all right, so 3717. So we might dive into that later. We get into the schedule C, but the bottom line is here at this point, 101 920. So now we're at the 101 920. And then if I go to page two, I'll rely on the tax software to calculate the income tax 18296. So this is going to be 18296. And then the the other credits, we don't have any, but we got the other tax, which is the self employment tax, which brings our total tax 18 plus the 2826 to 21122. We withheld 15,000. So therefore the amount due is 6,000. The software calculated a penalty of 161. So I'll say 161 on the penalty gets us the to the 6283. So 6283. Okay, that's just a quick recap of all the things that are kind of impacted. So they are main focus right here is just on that that amount that's being pulled in from the schedule C, because we're focused on line one and the income line. But obviously all these things become interrelated. And part of the difficulty on the tax code isn't that any one thing is difficult. But it's when you compile all these things together, and they have interrelated reactions, such as AGI limitations and so on and so forth, that that it starts to be complex just because of those interrelationships. And again, the schedule C, although you can have a fairly basic schedule C, it still could add a significant level of complexity to the tax return. As you could see, it can have an impact on many different kind of areas. Now if you sold business equipment, then that's when you might have that form 4797. So I don't think I'm going to dive into that right now. But other than to say other than to say