1099 — PROS/CONS

1099 — PROS/CONS

1099  —  (PROS & CONS)

~~~~~~~~~~~~~~~~~~~~~~

PROS

  1. Work your own hours – more autonomy in many cases.
  2. Work as many 1099 contracts as you want.
  3. May pay a bit more than W2
  4. Tax Write-Offs — tax write offs depending on which form of deduction you use; you can usually write off up to 300 sq ft for home office, any furniture, electronics, supplies, etc. used for your job, partial electric bill, internet, etc.

CONS

  1. Generally no benefits
  2. Contracts can be fleeting and unstable! If they over-staff or the client disengages, you may lose the work they thought they had for you.
  3. You need to do your own tax withholding— You pay both Employer and Employee Tax.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

***We, here at JFAMC, ALWAYS recommend that you seek competent, Professional help from a qualified Tax Preparer in your geographic area.

 

http://www.irs.gov/tax-professionals/understanding-tax-return-preparer-credentials-and-qualifications

http://www.mbopartners.com/resources/article/w-2vs1099-decision

http://www.lawfirms.com/resources/employment/pros-cons-being-hiring-independent-contractor-w2-vs-1099

http://www.quora.com/What-are-the-disadvantages-of-being-a-1099-employee-as-opposed-to-a-W2

 

Leave a Reply