I only earned $1500 lst year as a student (I'm a dependent, living home with my parents) from an internship. The employer did not take any taxes out and gave me a 1099 NEC. I filed and owed about $250. Does this sound right? I just found out that under about $12,500 income, you don't even need to file taxes.
You were self-employed and since your total earned income was less than $12,950 you did not owe or pay federal income taxes. You have to report self-employment income of $400 or more on a tax return.
Since you were self-employed you had to pay Self-Employment taxes on the net income you reported on your tax return. Self-Employment taxes are 15.3% for payment of Social Security and Medicare taxes.
The 12,950 applies to all other kinds of income like W2 employee wages and interest, dividends, sales, etc. But not to 1099NEC self employment income. The 1099NEC min to file is $400.
And actually the amount to file can be less than 12,950 if you are a dependent.
@caylaaroses-gmai wrote:
I only earned $1500 lst year as a student (I'm a dependent, living home with my parents) from an internship. The employer did not take any taxes out and gave me a 1099 NEC. I filed and owed about $250. Does this sound right?
So yes, "about" $250 is about right for the self-employment tax on (about) $1,500. You should see the self-employment tax on Schedule SE line 12, Schedule 2 line 4, and Form 1040 line 23.