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I have $23813 misc-1099 gross income. Tax rate my bracket 12%, for self employ 15.3%, total of 27.3%. TTax says I owe $4358 Fed. Why not $3224 w/ 12K standard deduct?

Forum|Forum|7 years ago
June 5, 2019
2 replies
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For more clarity, $xxxxx xxxx-misc income minus $12000 deduction is $11813. 27% of that is $3224. This is all federal, state not yet included.

Best answer by SweetieJean

12% is the marginal rate. Not all of your income is subject to that rate.

(11,813 - 9525) x .12 + 952.50 = $1227

But then add 92.35% of 15.3% of the full $23,813 for SE tax = $3365

Total = $4592

Any tax credits?

https://fairmark.com/general-taxation/reference-room/tax-brackets/2018-tax-brackets/

SweetieJeanAnswer

Employee

12% is the marginal rate. Not all of your income is subject to that rate.

(11,813 - 9525) x .12 + 952.50 = $1227

But then add 92.35% of 15.3% of the full $23,813 for SE tax = $3365

Total = $4592

Any tax credits?

https://fairmark.com/general-taxation/reference-room/tax-brackets/2018-tax-brackets/

mikepavlov3Author

I see. Thank you!