Skip to main content
TurboTax
Community
TurboTax
Community
TurboTax
Community
C
carsondanielalex
April 3, 2023
Question

Why is my blended tax rate over 40%? Single, non home owner using 1099-NEC and w2 forms. Am i doing something incorrect or is a 20% increase from last year normal?

  • April 3, 2023
  • 1 reply
  • 0 views
1099 NEC and w2, stayed in the same state but moved towns, non home owner and single

1 reply

M
MinhT1
April 3, 2023

Form 1099-NEC reports your self-employed income.

 

On self-employed income, you have to pay self-employment tax which is calculated at 15.3% on 92.35% of your self-employed income. This is in addition to tax on income.

 

This would be the reason why your blended tax rate is high. 

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
TurboTax Expert Assist
TurboTax Expert

Get answers to all your tax questions

Our experts are available on-demand, no appointment needed. Get help all year long with TurboTax Expert Assist.

Terms & ConditionsCookie settingsAccessibility statement
Intuit
TurboTax Credit Karma QuickBooks MailChimp

©1997-2022 Intuit, Inc. All rights reserved.
Intuit, QuickBooks, QB, TurboTax, ProConnect, and Mint are registered trademarks
of Intuit Inc. Terms and conditions, features, support, pricing, and service options
subject to change without notice.

Security Certification of the TurboTax Online application has been performed by
C-Level Security.

By accessing and using this page you agree to the Terms of Use.

Accessibility

TRUSTe nResult Certified e-File C-Level Security Certification