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Deductions & credits
If you received a 1099-MISC for work you performed, you are considered an independent contractor, and you will be responsible for your federal tax and FICA. FICA includes 12.4 percent in Social Security taxes and 2.9 percent in Medicare taxes for a total of 15.3%. When you are paid on a W-2, you are responsible for only 1/2 of the FICA. Your employer pays the other half. However, when you are paid on a 1099, you are responsible for all 15.3% (known as SE tax), plus your federal income tax. You will receive a deduction on Line 14 of Schedule 1 for 1/2 of your SE tax. TurboTax will calculate this deduction automatically for you.
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‎February 10, 2020
2:00 PM