topic I amended my return to include self employment income of less than $600. I did not get a 1099 so I did a c2 form. Now it says I owe federal taxes, I need help. in After you file

I amended my return to include self employment income of less than $600. I did not get a 1099 so I did a c2 form. Now it says I owe federal taxes, I need help.

allysathomas97 — Wed, 04 Sep 2019 03:42:42 GMT

Re: I amended my return to include self employment income of less than $600. I did not get a 1099 so I did a c2 form. Now it says I owe federal taxes, I need help.

VolvoGirl — Wed, 04 Sep 2019 03:55:55 GMT

What is a C2 form? You filled out schedule C. If you have a Net Profit of $433 or more you owe about 15.3% self employment tax on it.

And by adding more income can change other credits on your return.

Re: I amended my return to include self employment income of less than $600. I did not get a 1099 so I did a c2 form. Now it says I owe federal taxes, I need help.

VolvoGirl — Wed, 04 Sep 2019 03:58:28 GMT

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment. You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire. You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040 Schedule 1 line 27. The SE tax is already included in your tax due or reduced your refund. It is on the 1040 Schedule 4 line 57 which goes to 1040 line 14. The SE tax is in addition to your regular income tax on the net profit.

Re: I amended my return to include self employment income of less than $600. I did not get a 1099 so I did a c2 form. Now it says I owe federal taxes, I need help.

Anonymous — Wed, 04 Sep 2019 05:17:53 GMT

not only do you owe self employment tax, you'll owe regular income taxes as well. This is to be expected when you increase taxable income and self employment income