Before I entered my 1099-MISC, I was receiving a refund of $944 Federal based on my W2. After entering my 1099-MISC totaling $3,625, I now OWE $316 in Federal.
If self-employment tax is 15.3% and only applies to 92.35% above $400, shouldn’t it only be taking around $512 in federal leaving me with a refund of $432?
3625x 92.35% = $3,348
$3,348 x 15.3% = $512.24
I’m not understanding why it’s taking my whole refund plus $316 ($1,260 total). It did not push me into a different bracket.
Am I missing something? Any help would be appreciated!
