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markwu05
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I got a 3000$ 1099-misc for some one time consulting work, after I entered it, I find I have to pay 1650(or 55%) tax, how is that possible? We are filing jointly

 
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I got a 3000$ 1099-misc for some one time consulting work, after I entered it, I find I have to pay 1650(or 55%) tax, how is that possible? We are filing jointly

If payment for services you provided is listed in box 7 of Form 1099-MISC, Miscellaneous Income, the payer is treating you as a self-employed worker, also referred to as an independent contractor.

As long as your “net earnings from self-employment” are $400 or more, you will be responsible for paying the self-employment tax — calculated as 15.3% of your net earnings from self-employment.

To calculate your net earnings from self-employment, subtract your business expenses from your business revenues, then multiply the difference by 92.35%. (This odd multiplication figure is the result of the fact that you’re allowed to deduct 50% of your self-employment tax when calculating the income upon which the tax will be charged.)

How do I report income from self-employment?

Reporting Self-Employment Business Income and Deductions https://turbotax.intuit.com/tax-tips/self-employment-taxes/reporting-self-employment-business-income...
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