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posted Jun 1, 2019 12:14:14 PM

Adding a 2,000 1099-MISC payment made my owed taxes raise by ~$800 which seems very high. Does anyone who understands self-employment taxes know why this might be?

My understanding is that it should be taxed at 12.4% for social security and 2.9% for Medicare which would only be about ~$300.00.

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Intuit Alumni

Jun 1, 2019 12:14:15 PM

You also will be paying your normal federal and state rate along with the self-employed tax rate. For example:

Federal rate 25%

State rate 6%

Self-employed rate 15%

On $2,000 you can be paying

Federal $500

State $120

Self-Employed $300

Total taxes on $2,000 is $920

1 Replies

Intuit Alumni

Jun 1, 2019 12:14:15 PM

You also will be paying your normal federal and state rate along with the self-employed tax rate. For example:

Federal rate 25%

State rate 6%

Self-employed rate 15%

On $2,000 you can be paying

Federal $500

State $120

Self-Employed $300

Total taxes on $2,000 is $920

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