My husband and I have a young man (22 years old) in our life who is like a son to us. He is confused about his tax burden for 2014 and I would like some advice to share with him.
His situation is pretty straightforward:
Gross income for 2014: $20,000 (paid as a 1099 contractor)
Expenses for 2014: $11,200 (approx 20,000 business miles driven)
Individual standard deduction for 2014: $6200
He hasn't paid any estimated quarterly taxes.
He is not a seasonal worker, he owns no real estate, is unmarried and living at home with his parents.
When he figured his own taxes last week, he said his tax burden would be $4300 for the year. Then when he deducted his expenses, he said he was able to get it down to $1600.
Does this sound close to correct? I am not a tax professional but with an income that low and factoring in the standard deduction and his mileage deduction, it seems he wouldn't owe that much. But again, what do I know? I'm just his adoptive mom! LOL... that's why I'm here asking.
I appreciate any and all feedback!
Shoeless