W2 or 1099 Contractor Which is Better For You?

The tax code is created to benefited entrepreneurs and investors it is not meant to benefit W2 employees. If you have a choice to choose then reconsider the 1099 contractor here's why. In the IRS eyes if you are a 1099 contractor you are considered a business owner, and as a business owner you are qualified for tax deductions, and some of those deductions include writing off your office space, your cell phone, your health insurance premiums, you can set up your own retirement plan called a SEP IRA or a SOLO 401K set up a 401K for business owners at eTrade or Vanquard and you can take advantage of the QBI - Qualified Business Income Deduction a 20% tax deduction on all qualified business income, also you can deduct education related expenses. You can get the same tax deductions that all business owners get.

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