Could someone with a total income of t filing singly owe $1,000 federal taxes? $7,450 of it was on 1099-MISC?

$7,450 of it was on 1099-MISC. The 1099-MISC was for a delivery driving gig, and the income was listed as nonemployee compensation. Turbotax says the person owes $1,000 federal taxes.

He has only several W-2s and the 1099 Misc and will not itemize deductions. But for someone with such a low income to owe seems wrong. Any advice for how to reduce this tax bill?

Asked by attempter 57 months ago Similar questions: total income filing singly owe $1 000 federal taxes $7 450 1099 MISC Business > Financial Planning.

Similar questions: total income filing singly owe $1 000 federal taxes $7 450 1099 MISC.

Yes, it is possible that the person owes.... When you receive a 1099, you have to pay Social Security taxes of 6.2%, plus Medicare taxes of 1.45% with your tax return --- BUT you have to double both of them because the person is "self-employed". Therefore $7,450 x 15.3% = $1,139.85 in self-employment taxes owed to the government. And if he did not have enough federal taxes withheld from his other jobs to cover the self-employment taxes, then he will owe.

I find that a lot of people with multiple jobs do not have enough withholding taken out of their checks, so you might need to ask him about that for 2007 tax planning so this situation does not happen again. The only way for him to possibly decrease his tax bill is to itemize. For the delivery gig, did he use his own vehicle or have any other expenses that he might be able to deduct against the 1099?

There are also quite a few tax credits that the IRS is allowing this year, such as the telephone tax credit (instead of just taking the standard amount, it might be worth it to get together copies of all of the telephone bills because a credit is a $1 for $1 decrease of your taxes, where as a deduction helps to reduce the amount taxed). BTW, in your question, the total income amount is missing, but I hope this still helps you. Sources: 17 years of accounting experience .

We kind of lost the total income value, but, since I have experience with this, yes The 7450 as Misc income had to pay both Federeal income tax and Social security, probably (unless the person was somehow exempt for the system)In 1.45, your Social Security withholding is 6.2% of your wages up to $94,200 (annually indexed). In 1.45 that amount will increase to $97,500. The Social Security (full FICA) rate withholding is 1.457% (6.2% Social Security plus 1.45% Medicare) for wages up to $94,200 in 1.45 ($97,500 in 1.45).

In 1.45, all wages over $94,200 are subject only to the 1.45% Medicare rate. The rate remains at 1.45% for those who are subject only to Medicare. The Medicare wage base has not had a dollar limit for any year after 1993.

Ok, so 1.457 % os 7450 is 569.92 all by itself. The rest - 430.08 is the income tax paid. Sources: My answer .

Part of the tax may be self-employment tax It sounds like the tax withheld on your W-2's wasn't enough to compensate for the 1099 income. In Turbo tax, 1099 income generates self-employment tax which is added to your federal income tax. Print out your tax return and check the section which lists "taxes" on page 2.

There is no way to avoid this tax when a 1099 is issued. You would need to pay estimated tax during the year or have the employer change you to a W-2 employee so that taxes can be deducted from your pay. You could also quit the gig..

1 forgot about the double thing..... I knew that, thoughSeems like you can go back and write some of that off somewhere too. I .

Forgot about the double thing..... I knew that, thoughSeems like you can go back and write some of that off somewhere too. I.

2 MonMurphy1966, regarding your answer "Yes, it is possible that the person owes....": there is a credit of 50% of self employment tax on page 1 of 1040. In essense, the taxpayer is only paying 7.65% in tax.

MonMurphy1966, regarding your answer "Yes, it is possible that the person owes....": there is a credit of 50% of self employment tax on page 1 of 1040. In essense, the taxpayer is only paying 7.65% in tax.

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If you live in another state and owe another state unemployment will they take your income taxes.

My total income is $18,000yr I cashed in an ins. Policy and got $2200 from it Will I have to pay taxes, I am 70.

Is there a website to find out if I owe taxes.

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