confused how I am going to be taxed this year since I have many sources of income including stocks, side hustles, main job, and unemployment?
So for starters i'm in colorado and am single filer
my estimated main job revenue i'm looking at $27,700 gross (not self employed)
stock income (holding under 1 year) around $11,000
doordash income 2,263 ($273 would be my mileage deduction)
and unemployment 16,525 (untaxed)
i'm just a little worried here that i might get pushed into a different tax bracket
- ?Lv 72 months agoFavourite answer
All of those are simply added together to get your total income subject to income tax.
(Stocks held longer than 1 year would have been excluded)
The side hustle is treated as self-employment. You can subtract the expenses from revenue to get your business income. That income counts in your income tax calculation, and in addition you have to pay a fixed rate social security and medicare taxes.
You should be worried about how much income you have not yet paid tax on. You will likely owe a penalty for underpayment.
Don't worry about brackets; they don't mean much.
- STEVEN FLv 72 months ago
Federal income tax is based on TOTAL income, not income from individual sources.
Unemployment IS NOT untaxed. You are in whatever tax bracket you are in. The very concept of being pushed into a different tax bracket means you need a course in taxes.
- SlickterpLv 72 months ago
Tax brackets work as such: the only amount taxed at the new amount is the amount above the bracket line. If the bracket line is $25,000, and you make $25,005, then only the $5 is taxed at the higher amount.
- Ron AkiaLv 72 months ago
You'll receive 1099's from your stock investments, doordash, and your unemployment. Incidentally, unemployment is taxable. I'd recommend looking at 1 Form 1040 Instructions which gives you the information you need along with tax charts.
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- Christin KLv 72 months ago
Use a reliable online or professional program to add up all your sources of income and any deductions you are entitled to as a self-employed filer. I would not worry too much about being pushed to a higher bracket--that's what deductions are for. You have a lot of expenses you can deduct when you are self-employed--but you will need to have good records.
When you use an online program you will not have to actually FILE until you pay them--it's totally worth your time and money to do so if you have a lot of confusing and many different sources of income and expenses as you do. Bite the bullet and do that. For a $39 investment in a home program like Turbo-Tax software, you will be able not only to figure it all out, but also print your forms and then file them or upload them to the IRS.
- ShayLv 72 months ago
How does this year's TOTAL income compare to the TOTAL income from other years? We can't tell you if this pushed you into a different tax bracket when you didn't give TOTAL income from previous years.
Taxes is always based on total income minus allowable deductions. After all deductions are taken off the income - the amount remaining determines your tax bracket and the amount you will owe for federal income taxes. The STANDARD deduction is $12,550 for this tax year.
Not having taxes withheld on the unemployment was a HUGE mistake. Because of that - it is very likely you WILL owe.
Next, having doordash income means that you was "self employed" and will need to pay for social security and medicare taxes on that money when you file your tax return. This is an extra tax that will just be accessed on the income from doordash (or any other "side hustle" that didn't collect these kinds of taxes)
If your only deductions will be the standard deduction and the mileage deduction - then you will very likely be in the 22% tax bracket. If you can itemize other deductions, then you MIGHT be able to get back into the lower tax bracket. (But - once you start itemizing deductions - then you can't take the standard deduction - you have to pick either the standard or the itemized list - you can't have both.)
- babyboomer1001Lv 72 months ago
You won't be taxed any differently from one job/one income or several jobs/investments/several incomes. It is added all in your tax return. You submit your income statements of all sources and what ever tax bracket you are in, you pay what you owe.
- StephenWeinsteinLv 72 months ago
Your self-employment tax would be about 14% of the difference between the door dash income and the mileage deduction.
Your income tax is based on the total of all the income, and it will be a lot.
It would have been smarter to hold the stock longer, because the tax rate on long term gains is lower than on short term gains.
- A HunchLv 72 months ago
You have $57488 of ordinary income based on the information that you have provided here.
- ?Lv 52 months ago
You're screwed. Unemployment is taxable income and you didn't have any tax withheld. BIG mistake. Your doordash is self employment income and you will owe $281.18 self employment tax plus income tax on that. On your stocks, you will owe on the difference between the sales price and your cost. Because you held it less than a year, it will be ordinary income. Depending on how much the gain on your stocks was, you might be lucky enough to stay in the 12% bracket, but you're awfully close to going up to the next one. If you've got some cash, you might want to consider making a contribution to a Traditional IRA (not a Roth) to lower your taxable income.