1099 misc greatly decreased my return

[casodonnell]

When I added my 1099 Misc for only 2050.00 it decreased by return by over $820 which seems inaccurate, and way too much, how can I figure out if this is accurate or not? I am in 15% tax bracket I believe making 31,000 a year, correct? 

[rjs · Accepted solution]

That seems about right. If the income is in box 7 of the 1099-MISC it's subject to self-employment tax as well as income tax. If you're in the 25% income tax bracket the effective net self-employment tax rate is about 12.36%. So on $2,000 of income the income tax is 25% of $2,000 = $500 and the net self-employment tax is 12.36% of $2,000 = $247. The total tax on the $2,000 is $500 + $247 = $747.