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June 1, 2019
Question

My grandmother received a 1099 MISC - Line 7 in the current year for being an Yoga instructor. This amount seems to be causing a tax due. Is there a reason why?

  • June 1, 2019
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1 reply

June 1, 2019

Income reported in box 7 of form 1099-MISC is self-employed income. Self-employed income is subject to income tax AND self-employment tax which is calculated at 15.3% on 92.35% of net self-employed income. Also, generally there no tax withheld on a form 1099-MISC.

This is the reason why your grandmother now owes taxes.

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