This video sheds light on a crucial aspect of taxation that many overlook. The breakdown between W2 and 1099 income is eye-opening, showcasing the benefits of being a 1099 earner. It's all about maximizing your income and minimizing tax liabilities. Great insights!
New subscriber! Newly retired and newly licensed Enrolled Agent. Excellent video. As a retired Revenue Officer many of the people I encountered were not disciplined or educated to make 1099 income work as a benefit, thus they often ran into tax issues.
Both right now. My day job funds my real plans. Real estate and perhaps other businesses until I can work what I want and how much I want in perpetual semi-retirement 🏠🏠🏠🏠🏠🏠🏠🏠
I don't know if this will be seen by others, but W2, W4, 1099,1096,1097 are all class 5 gift and estate taxes and should use IRS form 706 or 709 gift and estate forms
I just started a few businesses and now this has came across my feed. I knew some of these benefits but wow. Now im wondering if i need to go to a professional and have them look at my stuff. Great video, now im confused as heck on this whole 1099 thing and what i can and cant write off. Feels like im missing out on lots of benefits.
Correct, though 1099 contractors can 1) write-off the 15.3% and 2) use an entity like an S-Corp or C-Corp to shield themselves from this tax altogether.
Awesome video. Thank you. I learned a lot. I will make sure to check your channel in more detail. I’m sure you have videos that offer more detailed information.
Can property owners with LLCs deduct things like meals, when husband and wife go to talk about the things that need to be done on the properties. Is that allowed?
(not a tax prof.) My wife works for my LLC. She has a company email address and at the end of the year she receives a 1099 from the LLC. It's only a couple grand and really just shifts LLC profit from one pocket to another. However it is proof that she works with/for the LLC). So if there is a leaky faucet and other issues at a property, and over dinner you and your wife determine who is going to email companies to get estimates for the work, that would technically be a business dinner.
Hi, Great video. I have a question. What about if you are a salon owner who has only 1099 workers. Can you put yourself also on 1099 as an owner, if you are LLC under C corporation???
Yes! I put myself on w2 but the taxes I pay are extremely high. So I am trying to understand how can I pay myself under 1099 , or is it that I am under C corp that is making me pay those high taxes?
As a 1099 earner, you have access to the same tax deductions as you would with an LLC. An LLC will only provide you with added legal protection, unless you want to be taxed as an S-Corp or C-Corp. Nonetheless, I'd suggest the following two videos: - 30 Best Business Tax Write-offs: ruclips.net/video/cephBVusUS4/видео.html - The Best Entity for Every Stage of Your Business: ruclips.net/video/SCpWeCLfqo4/видео.html Hope this helps!
A) This assumes a certain level of income and B) It's not surprising that a CPA is advocating for the method that requires the hiring of an accountant to file for you 🙄
As a basic premise for a 1099 being better. Some people do not earn enough for it to make sense. Some people do not have enough qualifying expenses to deduct. This may be true for earners of a certain type, but to say that it is better as a blanket statement is false. If a W2 was worse for employees in all cases, then no one would earn that way because no business would pay under a W2 as it costs them more. I can't fault you for drumming up business for yourself and your industry, but a 1099 is not better in all cases. Clearly.@@mycpacoach
Yes. You mentioned jobs that are full of business expenses and generally have higher incomes. You're a CPA. Run the numbers on someone who works at Walmart, rents an apartment, and walks to work. Like I said, it makes sense for certain earners, but it is not BETTER as a default. W2 is the default for a reason. @@mycpacoach
This is an excellent video in every aspect. The knowledge, the editing, the simplicity, etc. Thank you Sherman for the help. I really appreciate it.
Thank you, I sincerely appreciate your feedback. I am glad you found this helpful.
This video sheds light on a crucial aspect of taxation that many overlook. The breakdown between W2 and 1099 income is eye-opening, showcasing the benefits of being a 1099 earner. It's all about maximizing your income and minimizing tax liabilities. Great insights!
Exactly! Thank you.
New subscriber! Newly retired and newly licensed Enrolled Agent. Excellent video. As a retired Revenue Officer many of the people I encountered were not disciplined or educated to make 1099 income work as a benefit, thus they often ran into tax issues.
Both right now. My day job funds my real plans. Real estate and perhaps other businesses until I can work what I want and how much I want in perpetual semi-retirement
🏠🏠🏠🏠🏠🏠🏠🏠
I don't know if this will be seen by others, but W2, W4, 1099,1096,1097 are all class 5 gift and estate taxes and should use IRS form 706 or 709 gift and estate forms
I just started a few businesses and now this has came across my feed. I knew some of these benefits but wow. Now im wondering if i need to go to a professional and have them look at my stuff. Great video, now im confused as heck on this whole 1099 thing and what i can and cant write off. Feels like im missing out on lots of benefits.
Excellent video. Thank you sir!
So if a 1099 employee for a semi trucking company can I have my own LLC or any of those?
Is there a tax advantage if your LLC is taxed as an S corp and you are a W2 employee of your own LLC?
Yes. Watch my full video on this topic here: ruclips.net/video/SCpWeCLfqo4/видео.htmlsi=Q8gXMTZiPLeFEgTk
Great info! Love your videos! Thank you!
In W-2, employers pays half of 15.3% owed taxes or 7.65%, 1099 employee pays the entire 15.3%
Correct, though 1099 contractors can 1) write-off the 15.3% and 2) use an entity like an S-Corp or C-Corp to shield themselves from this tax altogether.
Sounds like 1099 is the way to go. I need to hire me a CPA
Can I work w2 and hold a LLC and can I take my w2 money out it in my LLC bank account
Great information broo!! As a Bussiness owner, Im allowed to deduct all of my 401k Contributions on my taxes for that year???
Is it possible to combine 1099 with w2 especially as couple filling taxes together Sir?
Awesome video. Thank you. I learned a lot. I will make sure to check your channel in more detail. I’m sure you have videos that offer more detailed information.
Awesome insights! I'm recently transitioning from W2 to 1099,so I can't wait to use these tips during tax time.
But when you go S-Corp on that 1099 you have to pay estimated taxes upfront.
Yes, technically any individual that expects to owe more than $1,000 is required to make quarterly estimated tax payments.
Nice job. Solo 401k all the way, can add spouse for their own solo if they “work” in business, plus the solo has catch up 50+ which SEP does not.
People say I can work w2 and hold LLC
Hi,are you keeping up with Social security change
Hi, what would you like to know?
@@mycpacoach will the changes to Social Security affect our investment if we go from W2 to 1099
Can property owners with LLCs deduct things like meals, when husband and wife go to talk about the things that need to be done on the properties. Is that allowed?
(not a tax prof.) My wife works for my LLC. She has a company email address and at the end of the year she receives a 1099 from the LLC. It's only a couple grand and really just shifts LLC profit from one pocket to another. However it is proof that she works with/for the LLC). So if there is a leaky faucet and other issues at a property, and over dinner you and your wife determine who is going to email companies to get estimates for the work, that would technically be a business dinner.
Hi, Great video. I have a question.
What about if you are a salon owner who has only 1099 workers. Can you put yourself also on 1099 as an owner, if you are LLC under C corporation???
To clarify, are you saying that you operate as an LLC taxed as a C Corporation?
Yes! I put myself on w2 but the taxes I pay are extremely high. So I am trying to understand how can I pay myself under 1099 , or is it that I am under C corp that is making me pay those high taxes?
@@evamiteva1065yes, you are a C-Corp that pays about 15-20% you have to transition to S-corp for 0% taxes on you and your employees
I’m 1099 self employed and have to pay lots of taxes this year. Could you please guide me how to open an LLC. Thank you!
As a 1099 earner, you have access to the same tax deductions as you would with an LLC. An LLC will only provide you with added legal protection, unless you want to be taxed as an S-Corp or C-Corp. Nonetheless, I'd suggest the following two videos:
- 30 Best Business Tax Write-offs: ruclips.net/video/cephBVusUS4/видео.html
- The Best Entity for Every Stage of Your Business: ruclips.net/video/SCpWeCLfqo4/видео.html
Hope this helps!
Great. Thank you so much. I will watch your videos now. I learn a lot from you and always support your channel.
How can I contact you
A) This assumes a certain level of income and
B) It's not surprising that a CPA is advocating for the method that requires the hiring of an accountant to file for you 🙄
Where does it assume a level of income?
As a basic premise for a 1099 being better. Some people do not earn enough for it to make sense. Some people do not have enough qualifying expenses to deduct. This may be true for earners of a certain type, but to say that it is better as a blanket statement is false. If a W2 was worse for employees in all cases, then no one would earn that way because no business would pay under a W2 as it costs them more. I can't fault you for drumming up business for yourself and your industry, but a 1099 is not better in all cases. Clearly.@@mycpacoach
Did you watch the full video?
Yes. You mentioned jobs that are full of business expenses and generally have higher incomes. You're a CPA. Run the numbers on someone who works at Walmart, rents an apartment, and walks to work. Like I said, it makes sense for certain earners, but it is not BETTER as a default. W2 is the default for a reason. @@mycpacoach
How would someone in your example not benefit more from the QBI deduction (benefit #1)?