I found a 1099 post filing and went to amend. In addition, I found that I was not claimed as a dependent on another 1040. But the resulting tax percent doesn't make sense. How is a $4,237 taxable income result in a $2,892 due? something isn't right.
Please help
You'll need to sign in or create an account to connect with an expert.
It sounds like you may have some self-employment tax being calculated on your tax return.
Self-employment tax is 15.3% on your independent contractor, self-employment or business income. If you had significant income from 1099-MISC forms you would be taxed at 15.3% on this income after subtracting any expenses you had for that income. That's all unrelated to your taxable income.
To get to your income tax (which is a different tax than your self-employment tax), you use your taxable income. There are other deductions that are taken into account to get to your taxable income like the standard deduction ($12k for single, $24k for married filing jointly) and the qualified business income deduction which is a 20% tax break for income taxes.
So even if your taxable income and income tax is really low, you could have substantial self-employment tax due.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
Tax_payer03
New Member
terrys-mail2
New Member
victoriad_2022
New Member
kare2k13
Level 3
elahoo
Level 1
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.