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Get your taxes done using TurboTax
The W-2 job will save you money on taxes. With a 1099, you can deduct expenses but you owe income tax PLUS self-employment tax. For example, on your pay stub, it shows a deduction where you pay social security and medicare taxes. Your employes as to match those amounts out of his pocket. When self-employed (1099), you have to pay both sides. Instead of 7.675% of your income you will pay 15.3% on 93% of your profit. You will need to make quarterly estimated taxes to keep from being penalized. No 401k is not good, if you are a saver, but you can contribute some to a IRA
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‎June 28, 2023
3:59 PM