turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

My daughter earned less than $6,000, some on a 1099 Misc. Why does she owe taxes?

She earned less than $4,000 as an independent contractor and assumed that she would owe nothing since it is less than $12,000. Turbotax calculated that she owes $515.

3 Replies
AlanT
Expert Alumni

My daughter earned less than $6,000, some on a 1099 Misc. Why does she owe taxes?

Unfortunately, with self-employment, comes self-employment taxes.  She will have to pay her share of Social Security and Medicare taxes.  

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

My daughter earned less than $6,000, some on a 1099 Misc. Why does she owe taxes?

She owes self-employment tax for Social Security and Medicare.  If a person has even $400 of self-employment income they are required to file a tax return and pay self-employment tax.

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax


https://ttlc.intuit.com/questions/2893577-does-a-1099-misc-mean-i-m-self-employed


**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

My daughter earned less than $6,000, some on a 1099 Misc. Why does she owe taxes?

Sorry she owes the self employment tax.

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment.  You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400.  The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.  So you get social security credit for it when you retire.  You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040 Schedule 1 line 27.   The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 Schedule 4 line 57 which goes to 1040 line 14.  The SE tax is in addition to your regular income tax on the net profit.
Use your Intuit Account to sign in to TurboTax.
By selecting Sign in, you agree to our Terms and acknowledge our Privacy Statement.
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
message box icon

Ready to start your taxes?

Hand off your taxes, get expert help, or do it yourself.

See Pricing

Related Content

Manage cookies