Do I need to file taxes if I only made $2,500 with a 1099-MISC?

So I only earned about $2,500 last year through freelance work and got a 1099-MISC form in the mail. I'm currently living in Michigan and trying to figure out if I even need to file taxes. I had roughly $280 in federal taxes withheld from my earnings. Can anyone tell me how much I might owe in taxes (if anything) and recommend a good website where I can file my 1099-MISC online without spending a fortune? This is my first time dealing with this form and I'm completely lost.

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18 comments

NightOwl42

•8M

Yes, you generally need to file federal taxes if you have self-employment income over $400, which your 1099-MISC income qualifies as. For someone with only $2,500 in income, your federal income tax liability will likely be $0 since it's below the standard deduction ($13,850 for single filers in 2025). However, you'll still owe self-employment tax (Social Security and Medicare) which is approximately 15.3% of your net earnings. So you'd owe roughly $353 in self-employment tax ($2,500 × 92.35% × 15.3%). Since you already had $280 withheld, you'd only need to pay the difference of about $73. But filing is definitely worth it to claim that withholding! I'd recommend using the IRS Free File program, where several tax preparation services offer free filing if your income is below certain thresholds. FreeTaxUSA also handles 1099s for free (state filing costs a small fee).

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NightOwl42

•8M

You're generally right that 1099-MISC typically doesn't have withholding - that's more common with W-2 employment. However, in some situations, payers do withhold taxes on 1099-MISC income, especially if the recipient didn't provide a TIN or if there was backup withholding required. If the OP actually has a 1099-NEC instead of MISC (which is now more common for freelance work), then withholding would be even more unusual. They should check their form carefully to confirm both the type of 1099 and whether that $280 was actually withheld.

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Dmitry Ivanov

•8M

I was in an almost identical situation last year! Made about $2,300 on a 1099 and was stressing about taxes. I found this AI tax assistant at https://taxr.ai that was super helpful for my situation. It actually walked me through exactly what forms I needed and helped me understand the self-employment tax situation. The best part was I could just upload my 1099 and it explained everything specific to my situation - like what deductions I could take for my side gig to reduce what I owed. Definitely made dealing with self-employment tax way less intimidating for a first-timer.

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Dmitry Ivanov

•8M

It definitely helped me find legitimate deductions I wouldn't have known about. I was able to deduct a portion of my internet bill, some software subscriptions, and even part of my cell phone bill since I used them for my freelance work. It asks you specific questions about your work setup to identify potential deductions. As for accuracy, I found it to be spot-on. What I like is that it explains the tax rules and calculations so you understand where the numbers come from. It's based on current tax code and IRS guidelines. I cross-checked some of the calculations with the IRS website and everything matched up perfectly.

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Ava Thompson

•8M

Just wanted to update after trying taxr.ai that someone recommended here. It was actually really helpful! I uploaded my 1099-MISC and it immediately broke down exactly what I'd owe for self-employment tax vs income tax. I was shocked that I could deduct part of my home internet and the software I use for my side gig - ended up saving me about $70 in taxes! The step-by-step guide for filing was super clear too. Ended up owing way less than I expected and the whole thing took maybe 30 minutes.

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Zainab Ali

•8M

If you need to actually talk to someone at the IRS about your situation (which I did when I had a similar issue), good luck getting through the normal way. I spent HOURS on hold before I found https://claimyr.com which got me through to an IRS agent in under 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c After trying for days to get clarification on my 1099 filing requirements, having an actual agent explain everything made a huge difference. They confirmed I did need to file and explained exactly which forms I needed.

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Zainab Ali

•8M

It works by using automated technology to navigate the IRS phone system and wait on hold for you. When they reach an agent, they call you and connect you. It's like having someone else wait in line for you - nothing magical about it, just clever use of existing technology. I was skeptical too at first - the IRS phone system is notoriously terrible. But it's not a scam. They don't ask for any personal tax info and they don't stay on the call when you're connected with the IRS. You're still talking directly with official IRS agents, they just handled the horrible wait time part.

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Miguel Herrera

•8M

Update: I need to eat my words. After being completely skeptical about that Claimyr service, I was desperate enough to try it yesterday because I needed clarification on my 1099-MISC filing. I'm honestly shocked it worked. Got a call back in about 15 minutes, and then was connected to an actual IRS person who answered all my questions. Turns out I definitely needed to file even with my small income, but I'll be getting all my withholding back plus some credits. Totally worth the time to file. Still can't believe I didn't have to waste my entire afternoon on hold. Where has this been all my life?

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