<prompt> Human: I work full time and make 35,000. Claim 2 dependents on taxes. This past summer I was a subcontractor on a side job, worked alone for 2 weeks, that paid 9,250. Im starting to estimate my 2014 taxes, with just my W2 from my full-time job, I get 4700 federal refund. When I plug the side job income using a form 1099, even after claiming deductions for equipment, mileage, etc.., my refund goes down to 900. Wondering if Im missing something, or if the taxes are just that high.. Any input is appreciated. Thank you.  <response>: First, if you work any side jobs in the future, be sure to pay taxes quarterly. You are probably suffering some of the penalties for late payment. You are also responsible for paying the employers half of social security ect. Some of this money is also taxed at a higher rate because it falls into a different tax bracket.TL;DR A 35-40 tax rate is pretty reasonable when you are working 1099. 