Solved: Married filing jointly, W-2 + 1099MISC. W-2 ($115,682) gives a tax return of 9,500, adding 1099-MISC ($18,410) reduces tax return to 2,000. Am I doing something wrong?
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RN3
New Member

Married filing jointly, W-2 + 1099MISC. W-2 ($115,682) gives a tax return of 9,500, adding 1099-MISC ($18,410) reduces tax return to 2,000. Am I doing something wrong?

Hi,

My wife and I are filing our taxes for 2017 under status "married filing jointly". 

I got a W-2 for $115,682.

My wife received a 1099-Misc for $18,410.

When I filled up my W-2 info, the Federal refund shown at top of Turbotax window was around $9,500.

Once I added the 1099-Misc info, the Federal refund reduced to around $2,000. 

Am I doing something wrong? Is it expected to pay almost $8000 tax on the $18,400 income in 1099-Misc?

Please suggest. 


Thank you,

RN

1 Best answer

Accepted Solutions
TomD8
Level 15

Married filing jointly, W-2 + 1099MISC. W-2 ($115,682) gives a tax return of 9,500, adding 1099-MISC ($18,410) reduces tax return to 2,000. Am I doing something wrong?

When you entered her 1099-MISC into TurboTax, it should have generated a Schedule C.  Be sure she deducted her business-related expenses on the Schedule C.  Only her net income is taxable.

Also, remember that her 1099-MISC income is subject to the self-employment tax, as well as to ordinary income tax.  The self-employment tax is for Medicare and Social Security.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.**

View solution in original post

1 Reply
TomD8
Level 15

Married filing jointly, W-2 + 1099MISC. W-2 ($115,682) gives a tax return of 9,500, adding 1099-MISC ($18,410) reduces tax return to 2,000. Am I doing something wrong?

When you entered her 1099-MISC into TurboTax, it should have generated a Schedule C.  Be sure she deducted her business-related expenses on the Schedule C.  Only her net income is taxable.

Also, remember that her 1099-MISC income is subject to the self-employment tax, as well as to ordinary income tax.  The self-employment tax is for Medicare and Social Security.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.**

View solution in original post

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