1099 income, ballpark on taxes

[fittipaldi1of1]

Trying to figure out about how much I’d take home with a 1099 gig in florida. Could y’all help me?

500k 1099 income per year
I’d have to pay:
Health insurance (approx 25k per year)
Malpractice (approx 35k per year?)
401k (66k per year)

Figure these items are deductible and lower my taxable income to approx 374,000. Then I’m plugging this into an online tax calculator and putting 374k in as my 1099 income, my tax liability is about 105k. Is this about right?
thanks!

I toss around the idea of moving to florida after every vacation.. just got home…

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[partydoc]

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[aneftp]

When I was making 500k 1099 10-12 year ago in Florida. I usually paid 69-75k total taxes including self employment taxes fica everything

And I paid my own malpractice 25k and health insurance for the family as well.

Pay urself a 150k w2 salary as 1099

Expense everything. Depends how aggressive you want to be. Lease Cars/buy 6000 pound suv/section 179//travel cme

 

[forchinet121]

When I was making 500k 1099 10-12 year ago in Florida. I usually paid 69-75k total taxes including self employment taxes fica everything

And I paid my own malpractice 25k and health insurance for the family as well.

Pay urself a 150k w2 salary as 1099

Expense everything. Depends how aggressive you want to be. Lease Cars/buy 6000 pound suv/section 179//travel cme

Wow so you had a 14 percent effective tax rate on 500k income that’s awesome

 

[aneftp]

Wow so you had a 14 percent effective tax rate on 500k income that’s awesome

Tax brackets are different for married Vs singles/head of households. Think very closely when comparing tax rates



Marginal Rates: For tax year 2023, the top tax rate remains 37% for individual single taxpayers with incomes greater than $578,125 ($693,750 for married couples filing jointly).

The other rates are:

• 35% for incomes over $231,250 ($462,500 for married couples filing jointly);
• 32% for incomes over $182,100 ($364,200 for married couples filing jointly);
• 24% for incomes over $95,375 ($190,750 for married couples filing jointly);
• 22% for incomes over $44,725 ($89,450 for married couples filing jointly);
• 12% for incomes over $11,000 ($22,000 for married couples filing jointly).
  

This is why 1099 work is very advantageous to a person who is single. Cause they can drive ur taxable income lower say below AGI 190k. These are marginal tax brackets.

So if you are university employee and married making 425k-450k plus generous benefits vs 1099 married making 500k-525k no benefits. It may make no sense to go 1099

But if u are single university employee. Vs single 1099’ 1099 may work out better

500k 1099 is a grey zone in my opinion for full time work. Since I have a family. The university w2 450k makes more sense to me over a 500k 1099. And that’s what I chose. Since it comes with tremendous benefits to off set any tax savings I can get over a 500k 1099.

Now if you say 600k 1099…that favors 1099 work regardless of single or married. The more you make over the 35% tax threshold for tax filing (230k singles/460k married). The more it makes sense to go 1099

 

[nimbus]

When I was making 500k 1099 10-12 year ago in Florida. I usually paid 69-75k total taxes including self employment taxes fica everything

And I paid my own malpractice 25k and health insurance for the family as well.

Pay urself a 150k w2 salary as 1099

Expense everything. Depends how aggressive you want to be. Lease Cars/buy 6000 pound suv/section 179//travel cme

How low did you drive your AGI?

 

[pgg]

Wow so you had a 14 percent effective tax rate on 500k income that’s awesome

Keep in kind that he's a guy who'll buy a $10,000 TV for a home theater and write it off as a business expense because he used it once to check his work email.

You won't do as well unless you're similarly committed to tax fraud.

 

[Dr. Rude]

Keep in kind that he's a guy who'll buy a $10,000 TV for a home theater and write it off as a business expense because he used it once to check his work email.

You won't do as well unless you're similarly committed to tax fraud.

It is simply being “aggressive” in his interpretation of the tax code.

Sort of like disagreeing about the meaning of “is”.

 

[aneftp]

E

How low did you drive your AGI

How low did you drive your AGI?

Enough to get obama’s making work $600 credit for poorer people in one year 2009/2010?

Net business income was around 150k

I wrote off a sec 179 gm hummer as gm was gonna out of business. Actually made money reselling that hummer after 5 years!!

 

[Arch Guillotti]

Pay urself a 150k w2 salary as 1099

This is not a "reasonable" salary.

 

[UscGhost]

This is not a "reasonable" salary.

Kinda ironic though. Medicare pays about $20 per unit now, so if you did all medicare cases for 40hrs per week, might be around 160k per year lol

 

[aneftp]

This is not a "reasonable" salary.

Locums doc I work with in 2023 pays themselves this same exact salary. This is common They make around 500k 1099 as well.

CRNAs pay themselves 50k w2.

Now the couple of other anesthesiologists professionals locums docs who work multiple places raking in 1.5 million. They pay themselves 500k w2.

So it really depends how much 1099 revenue u generate.

With me these days. I don’t do much 1099 work. 20-50k extra side 1099 work last few year cause I’m true w2. I don’t even bother filing under my llc. I just do schedule c cause it doesn’t make much sense s corp filing. Very little savings when 1099 income is that low. I expense 30-50% of the low 1099 total income.

 

[Arch Guillotti]

Locums doc I work with in 2023 pays themselves this same exact salary. This is common They make around 500k 1099 as well.

CRNAs pay themselves 50k w2.

Now the couple of other anesthesiologists professionals locums docs who work multiple places raking in 1.5 million. They pay themselves 500k w2.

So it really depends how much 1099 revenue u generate.

With me these days. I don’t do much 1099 work. 20-50k extra side 1099 work last few year cause I’m true w2. I don’t even bother filing under my llc. I just do schedule c cause it doesn’t make much sense s corp filing. Very little savings when 1099 income is that low. I expense 30-50% of the low 1099 total income.

It's called cheating on your taxes.

 

[ERRES2288]

Locums doc I work with in 2023 pays themselves this same exact salary. This is common They make around 500k 1099 as well.

CRNAs pay themselves 50k w2.

Now the couple of other anesthesiologists professionals locums docs who work multiple places raking in 1.5 million. They pay themselves 500k w2.

So it really depends how much 1099 revenue u generate.

With me these days. I don’t do much 1099 work. 20-50k extra side 1099 work last few year cause I’m true w2. I don’t even bother filing under my llc. I just do schedule c cause it doesn’t make much sense s corp filing. Very little savings when 1099 income is that low. I expense 30-50% of the low 1099 total income.

Just cause they do it doesn’t mean it’s reasonable, they just haven’t been audited yet. BLS average for anesthesiologist is about 273k. Should probably be around there.

 

[BLADEMDA]

Just cause they do it doesn’t mean it’s reasonable, they just haven’t been audited yet. BLS average for anesthesiologist is about 273k. Should probably be around there.

Depends on your income and deductions:

$500K gross
Cash balance plan $150K
401K + employer contribution $30K
Healthcare $35K
Auto deduction $15K
Housing?
CME?
License?
DEA?


I can see $200K leftover if you do it correctly.

 

[aneftp]

It's called cheating on your taxes.

These are all legally entitled tax filings from tax attorneys who will defend any audits.

Have you even seen how dentists expense their practices. Most regularly net less than 50k. The orthodontist dudes take in the most and their w2 wages are 180k running everything through their offices.

These are chump change expenses compared to big corporations. They rent out 100k box seats to friends and family and deduct them as expenses.