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I have medical bills that should offset my Social Security and 1099-MISC income. Why do I still owe taxes?

Forum|Forum|7 years ago
June 5, 2019
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Best answer by Anita01

If you have 1099-MISC income in Box 7,over $400, you will owe Self-employment tax on that amount. SE tax is social security and medicare. That tax cannot be reduced by itemized deductions. In addition, your medical bills are a part of your itemized deductions. Only the amount of medical expenses over 7.5% of your Adjusted Gross Income is deductible, and only then if your total itemized deductions exceed the new, higher standard deduction.

A

Anita01Answer

Employee

If you have 1099-MISC income in Box 7,over $400, you will owe Self-employment tax on that amount. SE tax is social security and medicare. That tax cannot be reduced by itemized deductions. In addition, your medical bills are a part of your itemized deductions. Only the amount of medical expenses over 7.5% of your Adjusted Gross Income is deductible, and only then if your total itemized deductions exceed the new, higher standard deduction.