Standard Deduction For 2009
August 26th, 2008
Question: If self employment income is less than standard deduction, do we still owe taxes?
The wages for self-employment (1099) are less than the standard deduction for 2009, and taxes were already taken out of the W-2 portion of our wages–so the only thing that hasn’t been paid is the self-employment part. If this is less than $10,500, do we still pay taxes on it even if everything added together (W2 and 1099) is greater than the standard deduction?
Answer: There is no connection between the two. Self Employment income is taxed the same way as wages–you owe employment tax on it before deductions.
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