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posted Jun 3, 2019 1:51:37 PM

I amended my taxes by adding a 1099 misc that I received after filing. The 1099 misc is for roughly $3500 but it is saying I now owe $1,054 to Federal is this normal?

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1 Best answer
Expert Alumni
Jun 3, 2019 1:51:38 PM

Yes, it does sound normal.

There are several impacts to your return from adding a 1099-MISC:

  1. Self-Employment Tax. Since they didn't take Social Security or Medicare tax out, you pay employer/ employee share on your net income. If the 1099-MISC is $3500, that about 15%= $525. Expenses will decrease this.
  2. Regular Income Tax. You also pay that. So, lets say your marginal rate is 15%, that adds another $525. So, we got $1050 right there.
  3. It may also impact other credits on your return which are impacted by a change in income.

Either way, $1000 or so is easy to understand by itself.

Just make sure you add any ordinary and necessary expenses that you are entitled to.

1 Replies
Expert Alumni
Jun 3, 2019 1:51:38 PM

Yes, it does sound normal.

There are several impacts to your return from adding a 1099-MISC:

  1. Self-Employment Tax. Since they didn't take Social Security or Medicare tax out, you pay employer/ employee share on your net income. If the 1099-MISC is $3500, that about 15%= $525. Expenses will decrease this.
  2. Regular Income Tax. You also pay that. So, lets say your marginal rate is 15%, that adds another $525. So, we got $1050 right there.
  3. It may also impact other credits on your return which are impacted by a change in income.

Either way, $1000 or so is easy to understand by itself.

Just make sure you add any ordinary and necessary expenses that you are entitled to.