I paid a self employment tax estimate for $20,000 in income. However, I now have $40,000 on my 1099-MISC due to unforseen income.
When i fix my 1099-MISC income from $20k to $40k, my taxes due jumps from Federal: $1200 to $9000, and state from $250 to $1950.
This seems a bit much, as the difference in tax owed is $13.5K.
It doesn't make sense to me that i'd owe an extra $13.5K for an extra $20k in income. Did i do something wrong?
