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Level 1
June 6, 2019
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I added a 1099-MISC for approximately $2500, why would my tax return decrease by almost $1000?

  • June 6, 2019
  • 1 reply
  • 5 views
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Best answer by null725
On self-employment income, you pay 15.3% self-employment tax in addition to regular income tax. If you are in the 25% marginal tax bracket, the total tax on the self-employment income would be 40%, which is about what describe.

1 reply

null725Answer
Level 13
June 6, 2019
On self-employment income, you pay 15.3% self-employment tax in addition to regular income tax. If you are in the 25% marginal tax bracket, the total tax on the self-employment income would be 40%, which is about what describe.