Can I be w2 employee and a 1099 independent contractor

[roxannewaters]

My employer is hiring a contractor for consulting. I offered my service as an independent contractor for consulting. My current position is finance manager which I would retain, and provide independent consulting. Can I do that?

[ThomasM · Accepted solution]

Yes, you can.  In that situation, you'll receive both a W-2 and a 1099-MISC for the two distinct hats that you wear.

The 1099-MISC income is considered "self employment" income, and you'll pay SE tax on the net amount, after deducting any expenses associated with that income.  Both the income & expenses will be reported on Schedule C of your 1040. TurboTax will prepare the Schedule C.

You'll want to keep good records of expenses, since IRS allows you to subtract them right off the top of your gross SE income.  They will serve to lower the amount you'll pay SE tax on.