1099 and w-2

Forum|Forum|2 months ago
March 17, 2026
2 replies
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When I input my 1099 I owe just over $500 to federal. When I input my w-2 it says I should be getting back just over $500. When I combine them it says I owe just over $1,000 to federal. Why is that? And adding both incomes does not put me into a higher tax bracket.

Bsch4477

Level 15

The combined amount affects your AGI which in turn might affect some credits. We can’t see your return. You would have to look at both scenarios line by line to determine the changes.

Mike9241

Level 15

Putting just one in at a time will not give you the right results. You need both entered at the same time. With the W-2 only entered, you get back $500, but that is wiped out by the additional income and self-employment taxes (about 15% of net S-E income) from the 1099. There is no withholding on the 1099 to cover the additional taxes it generates. Your results are as expected.