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If my total taxable income for 2017 was $33,122, why am I being taxed at 22% instead of 12%?
I am an unmarried individual with no children.
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June 4, 2019
5:20 PM
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Retirement tax questions
Is any of it self-employment income from cash, a 1099-MISC or a K-1?
June 4, 2019
5:20 PM
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Retirement tax questions
Yes, the majority is from a 1099-MISC. Does that change the tax bracket I am in?
June 4, 2019
5:20 PM
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Retirement tax questions
No, but it means that in addition to regular income tax, you have to pay self-employment tax (Medicare and Social Security) on your net income from self-employment. This is taxed at 14.1%.
June 4, 2019
5:20 PM
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Retirement tax questions
Any profit from your Schedule C Profit or Loss from Business is taxed at 15.3%. The Social Security would be taxed at 6.2 and the Medicare at 1.45% were you an employee. These amounts would be withheld on your W-2 every pay period. Since you are, in a way, both employer and employee, these amounts are doubled on your Schedule SE.
June 4, 2019
5:20 PM