How much would I owe in taxes on a 20,000 1099?

Question

Lets say I write 5,000 off? Anyone know how to calculate?

I am from Nebraska. I am single with no dependents.

Answer 1

Depends on if you have any other income, your marital status and filing status, dependents, spouse's income.

If you're single, no dependents, and this is your only income, then by last year's numbers you'd get a $5000 standard deduction and $3200 personal exemption. Take that from the $15,000 ($20,000 minus $5000 expenses you can write off) and you'd have $6800 taxable income, and owe`about $683 in federal income tax.

But that's only part of the story. You'd owe 15.3% of the $15,000, or $2295, in self-employment tax - this is social security and medicare, and you have to pay the amount you'd pay if you were an employee plus the employer's half, since you're on a 1099.

Depending on where you live, there might also be state and local income taxes.

Answer 2

If you didn't pay in any estimated payments, you will likely owe a lot. Claiming zero for your W-2 job will probably make up some of what you owe on the 1099 job. Without knowing your total income for the year, no way to tell what the income tax will be, but figuring 25% or so for that wouldn't be unlikely - that would be $7500. You'll also owe self employment tax, for social security and medicare, of around $4240 for the 1099 job. If you can't pay what you owe by April 15, 2009, you can set up a payment plan, but it'll cost you fees and interest, plus penalties. And you'll owe some state tax on it - again, without knowing your total income for the year, no way to tell how much. VA state income tax ranges from 2% to 5.7%. At a guess, you'll be in the upper half of that range. --------- Ok, with your added info, your federal income tax should be around $7943, plus the 4240 se tax for a total of $12,183. Whatever is withheld for federal income tax on your W-2 would apply to that. There will also be penalties for underwithholding, since you were required to make quarterly estimated payments.

Answer 3

Judy has nailed it!

..So the more you can legitimately write off as justifiable expenses to the IRS, which were caused by your efforts to earn the $20,000, then everything looks brighter.
The form you need to fill out is a ... Schedule C...

Start at www.irs.gov

Good luck

Answer 4

Judy has it right. I had a 1099 of 65,000 and a w2 for another twenty. I'm paying around seven grand on it.