Lsjoel20 Posted June 27, 2023 Share Posted June 27, 2023 Has anyone ever been employed with a normal W2 but then pick up consistent 1099 work as a side gig. I am a w2 employee but we are looking at possibly adding rounding at hospitals, we are unsure of how this should be compensated. One idea that was floated was the hospital work would be considered a side gig and be 1099 work. if this is the case or if anyone has had both would it be best to start a LLC for the 1099 portion to allow for possible increased tax deductions? I know this is an odd and specific situation but I'm curious if anyone has any advice or been in a similar situation. 1 Quote Link to comment Share on other sites More sharing options...
ohiovolffemtp Posted June 27, 2023 Share Posted June 27, 2023 I have done 1099 work as a PT/PRN job in addition to a FT W2 job. The advantages of 1099 income is that you can deduct more things, e.g. license, DEA, CME, home office (if needed for your work), mileage, etc. I've also deducted the entire cost of state licenses from my 1099 income, even if I also did W2 work in the same state. It's even better if you hit the social security maximum on your FT job, so you don't have to worry about paying that. I have never created an LLC for my 1099 work and I don't believe it permits any additional deductions over just being paid directly. 1 Quote Link to comment Share on other sites More sharing options...
Moderator EMEDPA Posted June 27, 2023 Moderator Share Posted June 27, 2023 I have both 1099 and W2 positions. I have an LLC for my 1099 position and can deduct a lot of things, but have to file monthly business taxes and quarterly estimated federal and state taxes. It is a pain in the butt. I pay an accountant quite a bit to do this and write off their expense. Quote Link to comment Share on other sites More sharing options...
Administrator rev ronin Posted June 27, 2023 Administrator Share Posted June 27, 2023 I ONLY have a PLLC position now, which means I can deduct pretty much everything, but am responsible for both self-employment taxes, B&O taxes, and business personal property taxes. The latter are kinda frustrating--invest $1000, pay $13/year for the privilege of having spent that money on capital. Quote Link to comment Share on other sites More sharing options...
Moderator EMEDPA Posted June 28, 2023 Moderator Share Posted June 28, 2023 3 hours ago, rev ronin said: I ONLY have a PLLC position now, which means I can deduct pretty much everything, but am responsible for both self-employment taxes, B&O taxes, and business personal property taxes. The latter are kinda frustrating--invest $1000, pay $13/year for the privilege of having spent that money on capital. I live in one state and work in another, so I am a "foreign business entity" and pay a few hundred buck a month for the privilege. 1 Quote Link to comment Share on other sites More sharing options...
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