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Married filing jointly, W-2 + 1099MISC. W-2 ($115,682) gives a tax return of 9,500, adding 1099-MISC ($18,410) reduces tax return to 2,000. Am I doing something wrong?
Hi,
My wife and I are filing our taxes for 2017 under status "married filing jointly".
I got a W-2 for $115,682.
My wife received a 1099-Misc for $18,410.
When I filled up my W-2 info, the Federal refund shown at top of Turbotax window was around $9,500.
Once I added the 1099-Misc info, the Federal refund reduced to around $2,000.
Am I doing something wrong? Is it expected to pay almost $8000 tax on the $18,400 income in 1099-Misc?
Please suggest.
Thank you,
RN
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Get your taxes done using TurboTax
When you entered her 1099-MISC into TurboTax, it should have generated a Schedule C. Be sure she deducted her business-related expenses on the Schedule C. Only her net income is taxable.
Also, remember that her 1099-MISC income is subject to the self-employment tax, as well as to ordinary income tax. The self-employment tax is for Medicare and Social Security.