If I work on a 1099-MISC, I will pay approximately 15% for social security and medicare. Do I also pay for state and federal taxes all the same?
For example, I see NY state tax is 6% and since I will be landing around $40K at the end of the year, federal will be either 12% or 22%.
If this is the case, if I'm under $40K this year this gives me a total tax of 15%+12%+6%=33%
If I make over $40K, this will be 15%+22%+6%=43%.
This seems a little excessive. Especially for a single person who will be making approximately $40K this year on a 1099.
Is the 1099 really such a bad deal? I must be doing something wrong. Any explanation is appreciated.