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Get your taxes done using TurboTax
If you make $12,200 income even if the standard deduction is $12,200 you will still pay 15.3% tax on $12,200.
Standard deduction apply to "Ordinary Income" (W-2, Interest Payments, Dividends, Gains from Stocks, Rental Income, etc.).
Even if you make $100 as 1099 you will owe the IRS "Self Employment Tax" of $15.30. This is federal tax.
You will also owe the State tax on this income.
I was puzzled myself but then I realized that.
May 2, 2021
1:30 PM