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bentzna
New Member

Why is the final amount I owe different then the Business Tax it says I owe

Turbo Tax says that my business tax (on self employed income) is $511. But it says that I owe $757. Before I entered the info for my 1099-MISC, and I had ONLY entered info for my regular jobs (W-2 information) it said that I was owed $233. Why all the difference in numbers? Shouldn't it be $511 minus $233 and that's what I owe? 
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Accepted Solutions
MinhT
Expert Alumni

Why is the final amount I owe different then the Business Tax it says I owe

Income reported on your form 1099-MISC bears two different taxes: self-employment tax (which is the $511) and regular income tax.

This is why you owe more than the difference between $511 and $233. The extra $479 is regular income tax on your 1099-MISC income.

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2 Replies
MinhT
Expert Alumni

Why is the final amount I owe different then the Business Tax it says I owe

Income reported on your form 1099-MISC bears two different taxes: self-employment tax (which is the $511) and regular income tax.

This is why you owe more than the difference between $511 and $233. The extra $479 is regular income tax on your 1099-MISC income.

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

View solution in original post

bentzna
New Member

Why is the final amount I owe different then the Business Tax it says I owe

Thank you! that makes perfect sense!
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