Tax benefits

[Wajed]

what tax benefits do i get if I establish a EIN# for my side job?

[Katherine S 63]

Hello,

I can think of no Tax Benefit if you have an EIN number.  If you are a sole proprietor, you can use your social security number.  The only reason I can think of that you might want an EIN is to set up a business checking account but you could set up an separate account with a Social Security number as well.

I hope I understood your question.   Please reach out again if I missed the mark!!

Katie S.

[VolvoGirl]

You need a EIN if you pay W2 employees (not to pay sub contractors)   Having a EIN is good so you don't have to give out your ssn like if someone needs to issue you a 1099NEC or if you need to give so someone you paid a 1099NEC.  There are probably other reasons.

[Wajed]

I mean are there any tax benefits if I establish a EIN#? other than a self employed 401K where I cam put 66K.

Right now I pay so much in taxes every 3 months.