Tax on $10,000 Form 1099-Misc

If you are an independent contractor, have freelance income or a side hustle gig, you will probably receive a Form 1099-Misc.

For individuals, Form 1099-Misc reports payments to their trade or business.

The income for sole-proprietors is reported on Form 1040 Schedule C as gross receipts with profits subject to the self-employment tax.

For example, you received a Form 1099-Misc for $10,000 with business expenses of $5,000, which left you with a profit of $5,000. If you are filing as Single and have no other income, your federal tax liability would be approximately $350. Additional business expenses beyond $5,000 would reduce your tax liability.