Question

My taxes increase $1,119 when I add my 1099 NEC over what they would be with the same amount added to a W2 and not file 1099 NEC.

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W2 income is wages earned as an employee. Part of your FICA (Social Security) tax on wages are paid by the employer.

If you add the amount to a W2, the program assumes that portion of FICA tax was paid by the employer.

When you are paid as a Non-employee (1099-NEC) you are responsible for Self-Employment tax which is both halves of the FICA tax.

Additionally, when you enter the amount on the W2, I assume you are only increasing Box 1, but you would also need to increase boxes 3 and 5.

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