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markdw5
New Member

How much self employment tax would i owe on 10,000.00 net income

I paid mt son approx. 10,000.00 last year while he was in an apprentice training program if I 1099 him what will his self employment tax be \? And can I still claim him as a dependent he was 20 last year
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MichaelL1
Level 15

How much self employment tax would i owe on 10,000.00 net income

Your son would report the $10K of income in your example and then deduct any expenses (tools, materials, etc)he incurred to earn this income.

The net profit is then subject to Self-Employment (SE)Tax.  The SE rate for 2016 is 15.3%

https://www.irs.gov/publications/p334/ch10.html

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1 Reply
MichaelL1
Level 15

How much self employment tax would i owe on 10,000.00 net income

Your son would report the $10K of income in your example and then deduct any expenses (tools, materials, etc)he incurred to earn this income.

The net profit is then subject to Self-Employment (SE)Tax.  The SE rate for 2016 is 15.3%

https://www.irs.gov/publications/p334/ch10.html

View solution in original post

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