Question re: filing 1099-MISC – should I owe any SE taxes if my net income is negative??

This is my first year filing a 1099-MISC form. I did
not pay quarterly tax estimates, mainly because I knew
that I would be operating at a loss for 2007. My
expenses came out to be about $1,500 more than my
income. I have went ahead and tried to do my taxes
via one of these online free tax sites that I arrived
at via the IRS website – efiletaxreturns.net. To my
surprise, at the end it says I owe $2,027 in taxes!!
Can this be right? My form 1040 line 41 = – $3,332
(that’s negative), yet my SE tax is $2,027. Any clue
on what is going on here?? I know it’s probably hard
for you to answer this question without looking at my
forms…but I just want to know if I can actually owe
the IRS SE Tax if I operated as a loss as an
independent contractor filing a 1099 – MISC only.

You calculate your self employment tax on the amount on line 12, not line 41.

It is possible to owe no income tax, but owe Self Employment tax.

You didn’t say what your filing status was or whether or not you itemized deductions so I cannot figure out what your situation is.

Based on $2,027 of SE tax, I calculate your net self employment income of $14,345.

If your SE Income is $14,345 and SE Tax is $2027, the adjustment for 1/2 SE tax is $1,013.
Your AGI would be $13,332.
Since you said your line 41 amount was -$3,332, that would make itemized deductions of $ $16,664 unless you had other adjustments.

I find it a coincidence that your line 41 amount is exactly $10,000 less than the AGI.

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