Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.
02-15-2018 05:00 PM
I'm wondering if I can get an idea on what happened before going to and consulting a tax office...
I'm a college undergrad and am filing for the first time. I've had three jobs over the course of the year, two providing me with W-2's, and one providing me with a 1099-MISC. I've received grants and scholarships, which according to the TurboTax software are non-taxable. My total income is around $4,500 for the year and about $410 was taken from my wages for taxes. I do know that the job which provided me with the 1099-MISC considered me a contractor and that taxes were not taken from that income because it is my responsibility to pay them come tax time due to the nature of the job.
When filling out TurboTax, all seemed well until I plugged in the information from the 1099-MISC. It then showed that I had 79$ of taxable income, and was only receiving a return of about $70. I don't have exact numbers currently, but if needed I can retrieve them.
In addition I have about $400 in interest earned from a bond I received that year from my late great grandmother.
I'm wondering if anybody can explain why this is; if it's likely an error on my part and that I input information wrongly somewhere, or if my understanding of how taxes work is wrong. Considering I'm a first time filer, this is probably the case.
I was told (not by an accountant, mind you, a peer) that unless you fit into a tax bracket, all taxes were returned to you. The lowest bracket, as they said, was about 10,400$. So I was under the impression that I would get a full return, considering I only made $4,400.
However on further research it seems like only federal withholding is returned in full should you not fit into specific brackets. All other income is taxed and brackets begin at $1 of income. This would mean that I shouldn't get a full return of my withheld taxes; however, all of the federal tax (which came to $210 withheld) should be returned to me. So, why am I still only receiving about $70 back after filing? Is the unaccounted for $130 the taxes calculated from the 1099-MISC?
02-15-2018 05:51 PM
Your 1099-Misc income may be subject to self employment tax. This tax is not part of the standard tax tables. Look for Schedule SE in your return for any SE tax you are paying.