What is the tax rate on 1099 c

[michaelnstone]

I was receiving a 4400 refund via federal taxes but then had to amend my return because of late 1099 C forms, assing approximately 4000 to my taxable income and now turbotax is saying I owe 500 in federal.  Is the 1099 C income taxed that highly?

[JohnB5677]

Possibly, The IRS has a progressive tax.  The more income you make, the higher the tax goes.

The 24% bracket is:

• Single filer $86,376 - $164,925
• Married FiIe  Joint  $172,751 - $329,850

The entire $4,000 would go into this bracket.

[michaelnstone]

oh we don't make that kind of money as joint filers.  We didn't even clear 100k filing jointly with those 1099 additions.  I'm VERY surprised the tax would jump THAT much. 

[SweetieJean]

If you also received Social Security, more of it may have become taxable.  And any increase in income can also lower or eliminate some deductions/credits.

[HelenC12]

If you added $4,400 to your taxable income and your tax was $500, your effective tax rate is 11.4% ($500/$4,400). The lowest tax rate is 10% on taxable income. 

Click here for the 2021 tax brackets and to find how your taxable income is taxed and at what rate.