Question

Placement of income (1099)

Forum|Forum|6 years ago
November 22, 2019
1 reply
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Ok guys only taxable income I have is a 1099 (s), I have zero tax because of the deductions. But if I just put the 1099's in business income I get a 4500 self employment tax. Up until now I always put everything in personal income. Is that the correct way cause I grossed 61k and had write offs of 50k but it says I owe 4500 cause of S.E.T. (Uber driver)

TurboTax

VolvoGirl

Yes you have to report that as self employment income. Did you enter all your expenses? If you reported it as personal income before that was very wrong. What 1040 lines was it on in 2017 and before? Did you fill out a schedule C?

Something sounds wrong if you had a Net Profit of 11,000. The self employment tax should be about $1,500 in addition to the regular income tax on it.

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment on schedule C. You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire. You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040 Schedule 1 line 27. The SE tax is already included in your tax due or reduced your refund. It is on the 1040 Schedule 4 line 57 which goes to 1040 line 14. The SE tax is in addition to your regular income tax on the net profit.

T

tumonra1Author

Thx for the reply, yes that's what I thought been looking at it for a couple hours trying to figure out why. I made 61k gross, I had over 50k in E. I was 0 b4 that. I need to look at my H& R I think they did it the wrong way but got away with it. I am going to have too waste my time with a adduct

any money back off the table.t

VolvoGirl

What is your Net Profit on Schedule C?

Some expenses, such as home office or section 179 depreciation can only be used to reduce your schedule C taxable income to zero, and not to create a loss. Excess deductions for these carry over to the next year. And you have to answer yes to both questions about exclusive and regular use, not just one. The area of your home office must be used regularly and exclusively for business to deduct it.

Or you checked the box on 32b saying Some Investment is Not at Risk.