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posted Jun 4, 2019 1:08:26 PM

Should an 18 year old dependent who is a full-time college student, working part-time as an independent contractor and paid $11,700 on a 1099-MISC owe $2200 in taxes?

The tax rate is about 19% and seems very high.

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1 Best answer
Level 15
Jun 4, 2019 1:08:28 PM

You must pay 15.3% self employment tax on most of the $11,700 of income or about $1790 and 10% federal income tax on the difference between $11,700 and $6,300 (your standard deduction) or about $540. This comes out higher than $2200 because the self employment tax is actually a little less than $1790.

1 Replies
Level 15
Jun 4, 2019 1:08:28 PM

You must pay 15.3% self employment tax on most of the $11,700 of income or about $1790 and 10% federal income tax on the difference between $11,700 and $6,300 (your standard deduction) or about $540. This comes out higher than $2200 because the self employment tax is actually a little less than $1790.