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fcarbone
Level 3

Self employed student has 1099-misc for $10,000, but Turborax I need to pay taxes on full amount

I am a student, self employed, and claimed as a dependent by my parents. My 1099 for the year is  $10,243. I thought as a student under $12,200, I do not have to pay taxes. Yet Turbo Tax says I owe approx. $2,500 in federal. Please help, that does not appear to be correct. I am using TurboTax Home and Business. Thanks

1 Best answer

Accepted Solutions
MinhT1
Expert Alumni

Self employed student has 1099-misc for $10,000, but Turborax I need to pay taxes on full amount

Your 1099-MISC income is self-employed income and is subject to income tax AND self-employment tax.

 

As your income is less than the standard deduction of $12,200, you have no income tax to pay.

 

Self-employment tax is calculated at 15.3% of 92.35% of net self-employed income. On $10,243 income, self-employment tax is $1,447.

 

Please note that if your have expenses that were incurred to earn the self-employmed income, you can deduct them and you would pay less self-employment tyax.

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5 Replies
MinhT1
Expert Alumni

Self employed student has 1099-misc for $10,000, but Turborax I need to pay taxes on full amount

Your 1099-MISC income is self-employed income and is subject to income tax AND self-employment tax.

 

As your income is less than the standard deduction of $12,200, you have no income tax to pay.

 

Self-employment tax is calculated at 15.3% of 92.35% of net self-employed income. On $10,243 income, self-employment tax is $1,447.

 

Please note that if your have expenses that were incurred to earn the self-employmed income, you can deduct them and you would pay less self-employment tyax.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
fcarbone
Level 3

Self employed student has 1099-misc for $10,000, but Turborax I need to pay taxes on full amount

Thank You, Makes sense

VolvoGirl
Level 15

Self employed student has 1099-misc for $10,000, but Turborax I need to pay taxes on full amount

If you are a dependent your Standard Deduction can be less than the full 12,200.  So you might owe some regular income tax on your income.  Do you have any other income?  I wonder what the extra 1,000 tax is for if the self employment tax is only about $1,400?

Chadlove 36
Returning Member

Self employed student has 1099-misc for $10,000, but Turborax I need to pay taxes on full amount

First time for everything

 

Chadlove 36
Returning Member

Self employed student has 1099-misc for $10,000, but Turborax I need to pay taxes on full amount

Help my first time

 

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