[USA] What tips and tricks do you have to make the most of being a 1099 worker?
I've been doing 1099 work for a number of years now but I've heard people mention they have various ways to make being a 1099 worker better. Usually it's something about taxes and I suspect some deductions that I'm not taking?
Here are the USA-specific easy to understand ways to lower your income:
- individual/solo 401k to which you can contribute as an employee (max of $20,500 for 2022) and as an employer (for typical LLC, it's 25% of the income after expenses) - combined total max is $61,000 for 2022
- deduct expenses like health insurance, home office, services (internet, phone), equipment (computer, etc) -- there are rules for this so just listing the categories but see the rules
Am I missing anything else?
I realize there might be some more gray area things that could be deducted -- I've tended to be more conservative as I don't really want to get audited too much (already audited once due to an income categorization mistake but thankfully they owed me $1500 and I actually received it).
I've been doing my own taxes/accounting and I'm wondering if I went to an account what else they would find and if it would tend to be more gray area or I'm missing some obvious things.
Posted Apr 27, 2022, 8:33 PM UTC
i opened an LLC & and have alllll companies pay to the LLC, and every paycheck goes to a business banking account. then you can write off EVERY single thing you use for work (internet, phone, laptop, square footage, meals consumed during work). i saved a lot of money doing it this way!