I am a baseball umpire. When I enter my 1099-K my amount owed in taxes goes up. When I enter my expenses (mileage, uniform, gear) the owed does not come down. Why is that? Should it come straight off the top of those earnings? Does it tie into my standard deduction ?
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Yes, those self-employment expenses should be subtracted from your Gross self-employment income to arrive at your Net self-employment income. Your self-employment income is then added to your other income (W2, 1099-R, et.,, depending on your situation). Your standard deduction is eventually subtracted from your Adjusted Gross Income.
Keep in mind that you will also owe Self-employment taxes (SE Tax) on your umpire income.
Without looking at the totality of your income, deductions and credits, your "owed" amount can't be determined.
Tom,
Thanks, I am not looking for any exact amounts, I'm just wondering why the amount owed does not come down when I entered those expenses. Am I doing something wrong?
It went up when I entered the 1099-K, almost seems to ignore those expenses.
It could be that the expenses and the income from the K1 are not presently linked together. Be sure to enter your expenses in the section for Business Income and Expenses rather than employment expenses.
The Business Income and Expenses section is under Income for most versions of TurboTax.
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