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
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.
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.
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?