Thanks. I was confusing my son's taxes with my daughter's taxes. You are right. So now I have another question. She pays herself wages and part on the k-1. She has no SE tax. He works as an independent contractor, and the company gets 1099s. He then gets compensation from the company. He does pay SE tax. What is the difference in the tax rate paid for a given amount of compensation?. Is one way better than another?
