I'm a college student & made $5k last year. I got a 1099-MISC instead of a W2. It says I have to pay15% self employment tax. Is this right?! Last year w/W2 I paid 7% tax

[17lbrannan]

I don't own my own company, I don't have any business expenses. I get that I still have to pay Social Security and Medicare taxes, but don't think I should have to pay Federal Income Tax only earning $5k. Why is my tax rate double what I paid last year with a W-2?

Also I had to pay $60 to file Federal and $40 for State; not very "free."

[Lisa995]

Who did you work for?  You didn't notice you didn't get a check stub with taxes taken out when you were working?

[17lbrannan]

I know I have to pay tax because it wasn't withheld. I just don't get why it's double what I paid in taxes the last 2 years. (15% vs. 7%)

[Texas Roger · Accepted solution]

You are not required to pay any federal income tax since your total income was less than the standard deduction. However you must pay self employment tax on all self employment income above $400. It is double because a self employed person must pay both what the employee pays and what the employer pays which totals 15.3% of net income. When you get a W-2, you only pay what the employee pays and you never see the amount the employer pays. 

You had to pay to upgrade to Deluxe because you had to enter the 1099-MISC which can't be entered using the Free Edition.