(TurboTax implies he does have to file and pay taxes, but we always thought he didn't have to if his income is that low and if he is a full-time dependent student.)
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Agreed it is a lot of tax, but it has nothing to do with Obamacare. I did a workup of his situation in my own TT H&B and was taxed $151 federal and $388 SE tax, $539 total. Because he is claimed on someone else's tax return he only gets a standard deduction of $1050. Is that about what you get? Did he incur any expenses to earn this income? 10% on federal, 15.3% on SE tax. Sorry~~~~~
Agreed it is a lot of tax, but it has nothing to do with Obamacare. I did a workup of his situation in my own TT H&B and was taxed $151 federal and $388 SE tax, $539 total. Because he is claimed on someone else's tax return he only gets a standard deduction of $1050. Is that about what you get? Did he incur any expenses to earn this income? 10% on federal, 15.3% on SE tax. Sorry~~~~~
With a 1099-MISC (if income is reported in box 7) he is a self employed sole proprietor which means he is subject to self employment tax on earnings over about $400. So yes, he will owe SE tax and must file a tax return but will probably not owe any federal income tax.
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