Hello, hoping someone can help here. I've spent hours researching a couple of issues with 1099-NEC.
1. Although I've added the 1099-NEC for my husband (MFJ) and the information is there when I click on the "Update" button in the "Wages & Income" section, it shows $0 under 2023. I've tried adding, deleting multiple times and it still shows $0 even though the information is in the system and it's calculating a high amount of taxes for it.
2. When I enter the 1099 NEC, the amount seems to be getting taxed at ~50% for the federal taxes. The income is not pushing us into a new tax bracket or triggering any AMT etc. The total Federal + State for the 1099 NEC income seems is adding a ~65% tax liability for that added income. Is it because there is additional self employment tax getting added to increase the tax liability for this amount? We've never dealt with self employment income / 1099-NEC before.
Thanks very much for your insights here.
