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February 2, 2024
Question

1099 NEC

  • February 2, 2024
  • 2 replies
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Married filing jointly, both of us over 65. Total income before 1099 NEC is 90,000. When I  enter my 1099 of 11,700 my taxes owed goes from -220 to+3800! We are using the standard deduction. Why is this, could it be correct?

    2 replies

    Employee
    February 2, 2024
    **Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
    pauljg11Author
    February 2, 2024

    Thanks for responding. Completing the Schedule C Results in no changes to the huge increase in taxes due. Is an error on the Schedule C a possible problem?

    February 2, 2024

    that $11700 NEC can result in a Self-employment tax of about $1600 ($11700 x 15.3% * 92.35%) 

    you get a deduction for 1/2 so taxable income goes up by about $10,900. if that's taxed at 22% that's about $2400 in additional income taxes. So that $11700 is costing you about $4000 in taxes which would change a pre-entry refund of about $200 to a balance due of $3800

     

    These amounts are approximate and based on the income not affecting anything else in your return.