I made 11,000 in 2006. I also graduated from college. I have a 1099 and I am curious as to what I owe. Help?

Question

I use my vehicle for a lot of my business. I traveled roughly 10,000 miles last year. I graduated in May from college and have paid 600 in interest. I can not think of many deductions I have left out. Any suggestions or help is appreciated.

Answer 1

If the whole $11K is self-employment income, you'll owe self-employment tax on the net - you can subtract your business expenses from gross income to get your net income. Self-employment tax is 15.3%. You'll also owe a little income tax, but only a few hundred dollars if you were not a dependent, more like $600 if you were a dependent. If business expenses reduce your net income from the $11K, your income tax will also be less that these estimates. If the 10K miles was your total for business travel, you might not owe any income tax, but you'll still owe the self-employment tax.

You might or might not have to pay state and/or local income tax - that would depend on where you live.

If you are age 25 or older, or have a dependent child, you'd be eligible for an earned income credit.

If you are paying back any student loans, you can take an adjustment for the interest on that. And you also get an adjustment for half of your self-employment tax.

Answer 2

Was all your income 1099? There's a lot of deductions you can take for business-related expenses.

Here's some:
http://www.irs.gov/taxtopics/tc500.html

Answer 3

You probably won't owe anything, perhaps might even have a refund. Did you pay for college yourself? That could be another deduction for you. It really sounds like you'll have a refund. Good luck!

Answer 4

u can file free online federal tax return, get all deduction for business

Answer 5

You should go to www.turbotax.com.

You can fill in your data and it will tell you what you owe.

You do not have to pay until you want to print your tax return or file electronically.