Student who worked in a lab and got paid $4,000 and received a 1099-misc. Entering data in turbotax, shows $565 in federal tax. Why doesn't 12k single deduction cover?
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Student who worked in a lab and got paid $4,000 and received a 1099-misc. Entering data in turbotax, shows $565 in federal tax. Why doesn't 12k single deduction cover?
Student who worked in a lab and got paid $4,000 and received a 1099-misc. Entering data in turbotax, shows $565 in federal tax. Why doesn't 12k single deduction cover?
Self-employment tax does not get eliminated by the standard deduction. When you you receive a 1099-MISC, you are treated as self-employed and subject to SE tax. The tax is roughly 15%. This is why you have the federal tax liability.
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