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Message
Question about how a 1099 affects my taxes
Posted on 3/9/16 at 10:46 am
Posted on 3/9/16 at 10:46 am
I did contract work for the company I am currently employed by for a short time last summer in Texas. In total, they payed me $3,650. When I reported this into my income on TurboTax, it changed me from getting a refund of around $300 to owing $700 to Uncle Sam. This seems like a drastic change for such a small amount on income. Should I owe nearly 1/3 of my contract income in federal taxes?
This post was edited on 3/9/16 at 11:03 am
6
Posted on 3/9/16 at 10:52 am to tlsu15
quote:
Should I owe nearly 1/3 of my contract income in federal taxes?
yes sir, what you think you're in a 15% tax bracket?
Posted on 3/9/16 at 10:55 am to tlsu15
Sounds like you are in the 30% tax bracket. 30 percent of $3650 is roughly $1000. That would be the difference.
If you had some expenses related to earning that 1099 income, you might be able to offset the income.
If you had some expenses related to earning that 1099 income, you might be able to offset the income.
Posted on 3/9/16 at 11:02 am to tigerrocket
quote:
Sounds like you are in the 30% tax bracket. 30 percent of $3650 is roughly $1000. That would be the difference.
If you had some expenses related to earning that 1099 income, you might be able to offset the income.
This is what i figured. I as able to slightly offset it, but not by much.
Posted on 3/9/16 at 11:15 am to tlsu15
1099's can have a big effect at the end of the year considering you have to pay the full FICA and income taxes on that money.
This post was edited on 3/9/16 at 11:18 am
Posted on 3/9/16 at 11:18 am to tlsu15
also probably calculated self employment tax on that 3,650
Posted on 3/9/16 at 11:46 am to tlsu15
You are getting hit with self-employment tax in addition to income tax. That sounds about right.
Posted on 3/9/16 at 3:41 pm to tlsu15
Don't worry. ... Bernie bout to make it 50%
Posted on 3/9/16 at 3:46 pm to tigerrocket
quote:
Sounds like you are in the 30% tax bracket
No he's not. As others have stated, he's in the 15% bracket plus stuck paying both sides of the SS tax. OP, check and see if you can write off some expenses to offset the contract income.
Posted on 3/9/16 at 3:54 pm to tlsu15
FICA
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