1099 NEC

[pauljg11]

Married filing jointly, both of us over 65. Total income before 1099 NEC is 90,000. When I  enter my 1099 of 11,700 my taxes owed goes from -220 to+3800! We are using the standard deduction. Why is this, could it be correct?

[xmasbaby0]

If you have income reported on a 1099NEC, that is self-employment income.  You have to pay self-employment tax for Social Security and Medicare, as well as ordinary income tax.  You need to use online Premier or any version of the CD/download so that you can prepare a Schedule C for your business expenses.

https://ttlc.intuit.com/questions/2926899-how-does-my-side-job-affect-my-taxes

https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-1099-nec/1099-nec/L5qTsBiSe_US_en_U...

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

https://blog.turbotax.intuit.com/self-employed/self-employed-tax-deductions-

calculator-2021-2022-50907/https://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs

https://turbotax.intuit.com/tax-tools/calculators/self-employed/

[pauljg11]

Thanks for responding. Completing the Schedule C Results in no changes to the huge increase in taxes due. Is an error on the Schedule C a possible problem?

[Mike9241]

that $11700 NEC can result in a Self-employment tax of about $1600 ($11700 x 15.3% * 92.35%) 

you get a deduction for 1/2 so taxable income goes up by about $10,900. if that's taxed at 22% that's about $2400 in additional income taxes. So that $11700 is costing you about $4000 in taxes which would change a pre-entry refund of about $200 to a balance due of $3800

These amounts are approximate and based on the income not affecting anything else in your return.