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February 28, 2025
Question

Hi please help, I only earned 4600 dollars from my 1099 job in 2024, why the system say I need to pqy 650 dollars for federal tax?

  • February 28, 2025
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    1 reply

    February 28, 2025

    If you were self-employed and received income reported on Form 1099-NEC, then you may not owe any income tax based on the amount of income you shared in your question.  But, you would owe self-employment tax on those earnings.  This is paying into the Social Security and Medicare system on your behalf.  

     

    When you are paid as an employee of a company, your employer takes money from your paychecks for half of the Social Security and Medicare tax and the employee pays the other half.  When you are self-employed, you are responsible for paying these taxes as self-employment tax when you file your return.

     

    Take a look at the following TurboTax help article to learn more:

     

    What is the self-employment tax?
     

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