ACCOUNTANT EXPLAINS Why 1099 Income Is Better Than W-2 For Taxes

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1099 vs W2 Income - Which Is Better? Here Is The Answer By A Licensed CPA!
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Many people think that earning 1099 income means paying more taxes. But, the opposite is actually the case.
As a W2 earner, you pay more taxes and you pay them more often.
I have worked with doctors, lawyers, real estate agents, insurance agents, consultants, engineers, and so on… and guess what? Most of them earn a lot of money and prefer it to be structured as 1099.
And in this video, I am going to fully explain to you why that is the case as a licensed CPA that saves people millions in taxes at mycpacoach.com
So let's waste no time and jump right in.
1099 vs W2: (0:00)
The W-2 Myth: (0:55)
1099 Benefit 1: (2:38)
1099 Benefit 2: (3:38)
1099 Benefit 3: (5:56)
1099 Benefit 4: (7:39)
1099 Benefit 5: (9:05)
Apply to Work With a CPA: mycpacoach.com/contact/
Learn the tax game: mycpacoach.com/tax-saver/

Опубликовано:

27 июл 2024

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Комментарии : 38

@BBlongstroke1 24 дня назад

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.

@patriciaterry5539 23 дня назад

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.

@coachcortneyrose 3 месяца назад

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!

@mycpacoach 3 месяца назад

Exactly! Thank you.

@SortaFresh 2 месяца назад

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.

@mycpacoach 2 месяца назад

Thank you, I sincerely appreciate your feedback. I am glad you found this helpful.

@jackiekryske9580 3 месяца назад

Great info! Love your videos! Thank you!

@Falanu Месяц назад

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 🏠🏠🏠🏠🏠🏠🏠🏠

@bkfinancialplan Месяц назад

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.

@Tracklyfe_T 2 месяца назад

Great information broo!! As a Bussiness owner, Im allowed to deduct all of my 401k Contributions on my taxes for that year???

@lseh4720 3 месяца назад

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?

@mr.rodriguez3908 3 месяца назад

Is there a tax advantage if your LLC is taxed as an S corp and you are a W2 employee of your own LLC?

@mycpacoach 3 месяца назад

Yes. Watch my full video on this topic here: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-SCpWeCLfqo4.htmlsi=Q8gXMTZiPLeFEgTk

@Hi-jx5oe 3 месяца назад

Hi,are you keeping up with Social security change

@mycpacoach 3 месяца назад

Hi, what would you like to know?

@Hi-jx5oe 3 месяца назад

@@mycpacoach will the changes to Social Security affect our investment if we go from W2 to 1099

@dareeltoro6681 Месяц назад

In W-2, employers pays half of 15.3% owed taxes or 7.65%, 1099 employee pays the entire 15.3%

@mycpacoach Месяц назад

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.

@user-ko7mu8pf3e 3 месяца назад

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!

@mycpacoach 3 месяца назад

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: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-cephBVusUS4.html - The Best Entity for Every Stage of Your Business: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-SCpWeCLfqo4.html Hope this helps!

@user-ko7mu8pf3e 3 месяца назад

Great. Thank you so much. I will watch your videos now. I learn a lot from you and always support your channel.

@jimdandy8996 3 месяца назад

But when you go S-Corp on that 1099 you have to pay estimated taxes upfront.

@mycpacoach 3 месяца назад

Yes, technically any individual that expects to owe more than $1,000 is required to make quarterly estimated tax payments.

@SeanMHolloway 3 месяца назад

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 🙄

@mycpacoach 3 месяца назад

Where does it assume a level of income?

@SeanMHolloway 3 месяца назад

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

@mycpacoach 3 месяца назад

Did you watch the full video?

@SeanMHolloway 3 месяца назад

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

@mycpacoach 3 месяца назад

How would someone in your example not benefit more from the QBI deduction (benefit #1)?