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c1999610
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I added a 1099-MISC for approximately $2500, why would my tax return decrease by almost $1000?

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

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.

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

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.
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