It depends. Form 1099-NEC indicates self employment income, receiving income for services you perform as an independent person or contractor and not an employee. The business name is your name and your address. The income would be subject to personal income tax and self employment tax (social security and medicare taxes). If you have any ordinary, necessary and reasonable expenses for your type of business you can also enter expenses that allowed you to earn the income.
- What self employment expenses can I deduct?
- Personal income tax will be the rate at which your income combined falls in the tax tables (up to $100,000 in taxable income).
- Self employment tax is your net profit from your business (income from Form 1099-NEC less expenses) is calculated as follows:
- net profit x .9235 x .153 = self employment tax.
- Personal income tax and self employment tax will be your combined tax liability on line 24, Form 1040.
If you have more details and questions please add them here and we will help.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
