Announcement

Collapse
No announcement yet.

Anyone have examples of their 1099 deductions

Collapse
X
Collapse
First Prev Next Last
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Anyone have examples of their 1099 deductions

    Trying to decide If I should take a 1099 or w2 path for a job but I was wondering if folks have any examples of what they have been deducting as 1099 self employed. Or what are the advantages of 1099 compared to w2 and if they can give an example Thanks

  • #2
    Mine do not amount to much, because I get a lot of expenses reimbursed through a locums agency. Some of the most significant remaining ones are health insurance, the home office deduction, and meals and incidentals. My phone plan is cheap and I have few business miles. A major comparison point is the retirement plan. You can deduct pre-tax retirement contributions and contribute $57k total, as well as set up a customized plan as a sole proprietor. Your employer may or may not have generous matching, and if you're really lucky you an make after-tax contributions and in-service rollovers.

    Comment


    • #3
      My husband does locums at several different locations so he deducts mileage, hotel expenses and per diem. He also deducted his work computer, and scrubs, and various cme & training classes and required certifications. The hotel and mileage are the big ones, with everything else being much smaller. If you pay your own malpractice insurance that’s an obvious one.

      we don’t deduct a home office or our home WiFi (because it is not used exclusively for business use). I don’t bother deducting small stuff like stamps, printer paper etc, mileage for short trips.

      ETA: we don’t deduct health insurance because we are on my employer’s’ plan.

      Comment


      • #4
        I forgot the big one - the solo 401k.

        Comment


        • #5
          The best advice I can give is to do your own taxes. Even just a mock up. Because it will go through all the deductions that are available. When I started doing my own I legally doubled the deductions on my taxes. Because you know what to look for.

          I always recommend using any of the free online tax prep services with name of "Smitty Werbenjagermanjensen". Address of 124 Conch Street, Bikini Bottom.

          "Oh look another bajillion point declin-Ooooh!!! A coupon for pizza!!!!" <--- This is what everyone's IPS should be. ✓✓✓

          Comment


          • #6
            Thoughts, not just for the OP but for others either considering or already working 1099...
            • Home office and solo-k are biggies. If you take the HO deduction, calculating actual expenses versus the "Simplified" method will almost always yield a bigger deduction for physicians. (Don't choose SEP over solo-k just because your CPA says solo-k's are too complicated or something similar. Get another CPA instead.)
            • Self-employed health insurance and the option to pick a HDHP and also contribute to an HSA are nice (although SEHI prem's are usually ridiculous, so be sure to take into consideration)
            • Don't default to an s-corp just because your CPA tells you it's the thing to do - run the numbers and include the cost of administration (tax prep, bookkeeping, payroll) in the deductions).
            • Depending on how much you make, you may qualify for the QBI (199A) pass-through deduction. This can be another "biggie" - easier for docs to qualify for if they are married with a SAH spouse than if they are single.
            • If you convert any personal-use items to business (desk, chair, lamp, laptop, etc), you can deduct them, too.
            • If you drive to different hospitals/clinics, you can deduct the greater of mileage or actual expenses. Mileage typically works better for cheaper vehicles you keep a long time. Actual typically works better for expensive vehicles that you drive a lot for business v pleasure. If you choose actual in any year, you can't switch over to mileage for the same vehicle.
            • Malpractice ins is, of course, deductible, but most hospitals and agencies pay it for their contracting-physicians
            • If you work out of state, upgrades on flights in order to prepare for work are deductible (locums companies pay the base fare)
            If you end up going W2, negotiate to be reimbursed for business expenses you would otherwise pay OOP.
            Financial planning, investment management and CPA services for medical and high-income professionals | 270-247-6087

            Comment


            • #7
              Originally posted by jfoxcpacfp View Post
              Thoughts, not just for the OP but for others either considering or already working 1099...
              • Home office and solo-k are biggies. If you take the HO deduction, calculating actual expenses versus the "Simplified" method will almost always yield a bigger deduction for physicians. (Don't choose SEP over solo-k just because your CPA says solo-k's are too complicated or something similar. Get another CPA instead.)
              • Self-employed health insurance and the option to pick a HDHP and also contribute to an HSA are nice (although SEHI prem's are usually ridiculous, so be sure to take into consideration)
              • Don't default to an s-corp just because your CPA tells you it's the thing to do - run the numbers and include the cost of administration (tax prep, bookkeeping, payroll) in the deductions).
              • Depending on how much you make, you may qualify for the QBI (199A) pass-through deduction. This can be another "biggie" - easier for docs to qualify for if they are married with a SAH spouse than if they are single.
              • If you convert any personal-use items to business (desk, chair, lamp, laptop, etc), you can deduct them, too.
              • If you drive to different hospitals/clinics, you can deduct the greater of mileage or actual expenses. Mileage typically works better for cheaper vehicles you keep a long time. Actual typically works better for expensive vehicles that you drive a lot for business v pleasure. If you choose actual in any year, you can't switch over to mileage for the same vehicle.
              • Malpractice ins is, of course, deductible, but most hospitals and agencies pay it for their contracting-physicians
              • If you work out of state, upgrades on flights in order to prepare for work are deductible (locums companies pay the base fare)
              If you end up going W2, negotiate to be reimbursed for business expenses you would otherwise pay OOP.
              If we make $100,000 from W-2 and $100,000 from 1099, does this qualify for the pass through ? I'm a married doc with a stay at home spouse.. If not what would make me qualify? Cheers

              Comment


              • #8
                Originally posted by The Doc View Post

                If we make $100,000 from W-2 and $100,000 from 1099, does this qualify for the pass through ? I'm a married doc with a stay at home spouse.. If not what would make me qualify? Cheers
                read here: https://www.whitecoatinvestor.com/se...ment-accounts/
                tldr: yes

                Comment


                • #9
                  Originally posted by The Doc View Post

                  If we make $100,000 from W-2 and $100,000 from 1099, does this qualify for the pass through ? I'm a married doc with a stay at home spouse.. If not what would make me qualify? Cheers
                  Yes, it should in this simplified scenario. See this series of blog posts by Laura (follow the links after each post).
                  Financial planning, investment management and CPA services for medical and high-income professionals | 270-247-6087

                  Comment

                  Working...
                  X