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CamCart00
Returning Member

Huge deduction

Hello, I’m attempting to file my taxes for the year, I have two W-2 forms and one 1099-NEC form. My first two documents file as normal and says I’m set to receive around $1900 for federal and $400 for state, however, after I enter my second W-2 (for either company), federal goes down to about $250 and state is telling me I owe money. I’m not sure what I’m doing wrong but I have never had this issue, are you able to assist me with my filing?

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2 Replies
JamesG1
Employee Tax Expert

Huge deduction

Perhaps.  The 1099-NEC likely was reported as self-employment income and is subject to income tax as well as self-employment tax.

 

Self-employment income is reported on line 3 of Schedule 1.

 

Self-employment tax is reported on line 4 of Schedule 2.

 

These lines can be viewed at Tax Tools / Tools / View Tax Summary / Preview my 1040.

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Huge deduction

since you seem to have entered 1 w-2 and then the 1099-NEC  and then after entering the 2nd W-2 your taxes change significantly it could be that not enough income taxes were withheld on the 2nd w-2 to cover the increase in tax.

 

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