Opening up a business

Forum|Forum|2 years ago
October 25, 2023
1 reply
12 views

I have been working in the movie industry for 5 years now and many of my coworkers have been doing both 1099-NEC and W4 employment. What would be the benefits if I was to become a business and where would I start? I am mostly hoping to get a better understanding of how my taxes would change for my filing jointly with my wife and if it would save me money?

Ask the Experts - Extension - Sept 2023

EleanoreS

Employee Tax Expert

Good day zearatul171,

You can work for an employer and receive a w2 and also work as an independent contractor and receive a 1099-NEC. They should not be from the same payer.

If you form a business and work as an independent contractor, you would be able to deduct your necessary and usual business expenses against any income that is earned. There are a lot of other considerations.

This is a great resource to review if you are considering starting a small business.

Without a more thorough understanding of your tax situation; I can not advise exactly how your taxes would change.

Thank you for reaching out to the TurboTax Community