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    zelda64's Avatar
    zelda64 Posts: 2, Reputation: 1
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    #1

    Jan 29, 2008, 09:36 AM
    Unexpected 1099, looking for a ballpark tax rate given the specs listed
    Hey guys and gals, just found the site and it looks like there are many friendly and insightful people here that might be able to help me out, any information would be appreciated!

    Basics: Being sent a 1099 unexpectedly from a previous employer, married, no dependants, total wages for the 1099 = $11,539, can provide any additional info if necessary.

    Any ballpark for what the rate would be? Thanks again in advance!

    -Z64
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Jan 30, 2008, 09:58 AM
    If you have NO expenses to offset the $11,539 in income, you will pay:

    15.3% self-employment tax on $11,139 for $1,704.

    The income taxes depends on:

    - your other income.
    - your spouse's income.
    - whether you claim the standard deduction or itemize.
    - which state you live and/or work in.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #3

    Jan 30, 2008, 10:02 AM
    ATE,
    Just to make sure I and the OP understand (because I'm getting significant 1099 income this year from my book), The 15.3% comes off the top. Then the net amount of the 1099 income (after expenses related to the earning of that income) is added to your income for calculating taxes. Or can you deduct the 15.3% as an expense?
    zelda64's Avatar
    zelda64 Posts: 2, Reputation: 1
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    #4

    Jan 30, 2008, 10:08 AM
    I appreciate the prompt response ATE, thanks for the information I will definitely take it into advisement so I can begin setting money aside as soon as possible!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #5

    Jan 30, 2008, 03:42 PM
    Scott:

    You put your gross income on Schedule C, then deduct all the related expenses. Then transfer the NET income to Schedule SE, where the SE tax is calculated.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #6

    Jan 30, 2008, 07:33 PM
    Quote Originally Posted by AtlantaTaxExpert
    Scott:

    You put your gross income on Schedule C, then deduct all the related expenses. Then transfer the NET income to Schedule SE, where the SE tax is calculated.
    Ahh so the 15.3 is on Net income. Great. But its also in addition to the regular tax on the income.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #7

    Feb 1, 2008, 03:09 PM
    Yes. Self-employment tax is a separate tax from income tax.

    BTW, one-half of the SE tax is a deduction on the front of the Form 1040 as an adjustment to income.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #8

    Feb 3, 2008, 11:46 AM
    I'm working on the return using Turbo Tax. Do I also enter the 1099 income when TT prompts for them, or just in the Schedule C?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #9

    Feb 4, 2008, 12:26 PM
    Just in Schedule C.
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