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1099 vs w2 if new tax law passes

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  • 1099 vs w2 if new tax law passes

    If the new tax law passes, how would that affect the advantages/disadvantages of 1099 vs W2 jobs?  When comparing job offers should we now lean more towards w2 if salaries are similar?

  • #2
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    • #3
      Not necessarily. For example, if you have no or low match with the W2 job and you can stick $54k into a solo-k and the 1099 pays for your medmal, then it might get down to comparing the cost of self-insuring for health versus the lost 401k opportunity. If you are covered on your spouse's health plan, it makes it a bit easier.

      otoh, if you are considering academic and have a 403b/457b combo and the pay is the same (doubtful), you'd lean toward W2.

      While you (as of now) won't qualify for the small business preferential tax bracket, your taxable income brackets will be the same whether you are IC or W2.

      At least that's my understanding. Unusual for me to disagree with Zaphod - what am I missing?
      Financial planning, investment management and CPA services for medical professionals | 270-247-6087

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      • #4




        Not necessarily. For example, if you have no or low match with the W2 job and you can stick $54k into a solo-k and the 1099 pays for your medmal, then it might get down to comparing the cost of self-insuring for health versus the lost 401k opportunity. If you are covered on your spouse’s health plan, it makes it a bit easier.

        otoh, if you are considering academic and have a 403b/457b combo and the pay is the same (doubtful), you’d lean toward W2.

        While you (as of now) won’t qualify for the small business preferential tax bracket, your taxable income brackets will be the same whether you are IC or W2.

        At least that’s my understanding. Unusual for me to disagree with Zaphod – what am I missing?
        Click to expand...


        I am just thinking of the healthcare side of things mainly. If things pass remotely similar, wife will be going part time solely for that reason.

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