What is tax rate for 1099-MISC income?? I am seeing more than 30%?

[Rainman12 · Accepted solution]

If your 1099-MISC has Box 7 used, then it's most likely Self-Employment, which is reported on Schedule C and adds SE tax of about 15% on your net profit. Thus, if your tax rate on ordinary income is 25% it will be 40% on your 1099-MISC net SE income ...

[mirrielees]

I think on one of them it was listed in Box 3 "Other income", what is the difference between "Other income" and :Non-employee" boxes?

[Rainman12]

<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/f1099msc.pdf">https://www.irs.gov/pub/irs-pdf/f1099msc.pdf</a> Box 3 is for 'Other Income', which would normally go on Line 21 of your Form 1040, and be taxed directly from that entry at your regular marginal rate.

[lindamil6449]

i got a 1099 misc and box 7 was filled in, i am not  self employed, i work for the one person only , how do i show i am a statutory employee , one place it suggested just reporting the dollars in box 3 as other income.     I am trying to get the c schedule to work and EIC.  Last year i had a tax person do the taxes, but they wrote in see statement 1 and they attached a supplement statement  saying schedule c gross receipts or sales , seems like i cannot do that in turbo tax.  I just want to be sure irs will not have an issue with it

[Rainman12]

@lindamil6449  - You are Not a 'statutory employee'; If you were, you would have a W-2 so stating. For the type of income you have, you must either report as self-employed, or argue to IRS that you were really an employee. For Box 7 1099-MISC, IRS expects a Schedule C.