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Deductions & credits
Well a 1099NEC is for self employment income and gets reported on Schedule C. Then you pay self employment tax on the Net Profit on Schedule C in addition to any regular income tax on it. So sure you can owe more.
Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment. You pay 15.3% SE tax on 92.35% of your Net Profit (If it is greater than $400). The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire.
‎April 8, 2021
6:36 PM