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I worked as an independent contractor as was sent a 1099-MISC form. The amount i earned is less than the $12,000 standard deduction but it still says I owe over $1000.
I worked as an independent contractor for a business. This was the only work I did all year as I am a student. The total listed on my 1099-MISC is less than $10,000 and was the only income I earned all year. Why do I owe so much if the amount i earned is less than the standard deduction? Thanks.
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I worked as an independent contractor as was sent a 1099-MISC form. The amount i earned is less than the $12,000 standard deduction but it still says I owe over $1000.
The $1000+ you owe is not income tax. As you surmised, your $12,000 standard deduction reduced your taxable income to zero.
What you are paying is your social security and medicare tax, in the form of "Self employment tax".
Note that all your tax is on line 57 of Schedule 4. Your income tax, on line 11 of form 1040, is zero.
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I worked as an independent contractor as was sent a 1099-MISC form. The amount i earned is less than the $12,000 standard deduction but it still says I owe over $1000.
The $1000+ you owe is not income tax. As you surmised, your $12,000 standard deduction reduced your taxable income to zero.
What you are paying is your social security and medicare tax, in the form of "Self employment tax".
Note that all your tax is on line 57 of Schedule 4. Your income tax, on line 11 of form 1040, is zero.
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