# What if you made less than the standard deduction?



## getawaycar (Jul 10, 2017)

Couldn't find the answer to this question in a search. Many gig workers make less than the standard deduction (SD) since they're doing it part-time. If you're a regular W2 employee you wouldn't need to file a tax return and probably don't have to pay any taxes if you make less than a certain amount, I think its around $9k or so. But what happens if you're 1099 and made less than the standard deduction for the year? (I drive for Amazon Flex).

I know you have still have to file if you made more than $400 as a 1099 contractor, but the question is what taxes do you owe -- besides the SE (self-employment) tax which is not eligible for the SD?


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## Mars Troll Number 4 (Oct 30, 2015)

state/local taxes (possible)


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## kc2018 (Dec 14, 2017)

getawaycar said:


> Couldn't find the answer to this question in a search. Many gig workers make less than the standard deduction (SD) since they're doing it part-time. If you're a regular W2 employee you wouldn't need to file a tax return and probably don't have to pay any taxes if you make less than a certain amount, I think its around $9k or so. But what happens if you're 1099 and made less than the standard deduction for the year? (I drive for Amazon Flex).
> 
> I know you have still have to file if you made more than $400 as a 1099 contractor, but the question is what taxes do you owe -- besides the SE (self-employment) tax which is not eligible for the SD?


Being 1099 is better than w-2 because your work related deductions are SEPARATE from your standard deduction and reduce your taxable income on the Schedule C. Download the schedule C so you can keep track of anything 1099 income related that will come off on that form.

Then, you also take the standard deduction on your 1040. As a 1099 employee, you get both. W-2 people do not.

Also, like you said...with 1099 income.... Whatever is left as profit on 1099 income at the bottom of the schedule c is what you pay self employment tax on but can offset it with earned income credit and child tax credits. There is also a fuel tax credit but it is small. (See the last section of 1040 for math on it and credits....line 66a and below...not much can reduce it, though)


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## getawaycar (Jul 10, 2017)

Thanks for the replies.


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