Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

1099-Misc /Self Employed

Highlighted
Level 3

I have a client who does jobs on the side & got a 1099-Misc for 7875.00 on line 7 the rest of the lines are empty. .  She also has a W-2- Line 1,3 & 5 are $ 6733.00 

line 2 is $497.00

line 4 is $417

Line 6 is $ 98.00

Line 17 is $ 228   the program shows this person owes $ 75 to the State &  $801.00  federal- Does this sounds about right ?  She has no expenses

Labels (1)
0 Cheers
2 Replies 2
Highlighted
Level 12

@Blanca wrote:

I have a client who does jobs on the side & got a 1099-Misc for 7875.00 on line 7 the rest of the lines are empty. .  She also has a W-2- Line 1,3 & 5 are $ 6733.00 

line 2 is $497.00

line 4 is $417

Line 6 is $ 98.00

Line 17 is $ 228   the program shows this person owes $ 75 to the State &  $801.00  federal- Does this sounds about right ?  She has no expenses


 

Sounds right to me.

  • About $1113 in Self Employment Tax ($7875 x 92.35% x 15.3%)
  • $14,052 of income, minus $12,200 Standard Deduction, x 10% tax bracket = $186
  • So that's $1298 in Federal tax, minus $497 of withholding = $801 Federal owed.
Highlighted
Level 8

Does your client not have ANY expenses related to the 'job on the side'.  i.e. mileage, supplies bought, materials bought, marketing/advertising, equipment rental, etc?   You can also allocate some of the Health Insurance premiums (the program will do, if you enter correctly).  

If an answer solves your issue, click on the "Accept as Solution" button! Makes it easier for people to find answers to similar questions that have already been posed.