1099 + W2 question

Discussion in 'Finance and Investment' started by tyrionlannister00, Jan 10, 2018.

  1. tyrionlannister00

    Joined:
    Jul 10, 2016
    Messages:
    37
    Likes Received:
    27
    Status:
    Pre-Health (Field Undecided)
    Hi all, quick question... I usually do my taxes via turbo tax cause it's cheap and easy, this year I have 1099 income from contract work, about ~ 20% of our total income between wife and I.

    My question, is turbo tax premier or business (whatever it is), easy to use? I don't want to spend big bucks on an accountant as that kinda defeats the purpose of my having set up the S-corp in the first place, and they all seem to charge a lot for things I find really stupid easy.

    I'm fairly competent at finances/taxes, just hadn't used turbo tax for business before...

    Thanks in advance

    Tyrion
     
  2. Thread continues after this sponsor message. SDN Members do not see this ad.

  3. LookForZebras

    Joined:
    Oct 8, 2016
    Messages:
    41
    Likes Received:
    30
    Status:
    Attending Physician
    Yes, adding 1099 income is fairly straightforward and TurboTax does a good job of guiding you through it. If you're used to doing your own taxes, this will likely be a simple addition for you.

    This wasn't your actual question, but I wanted to point out that having 1099 income from contract work is very different than having a business that's taxed as an S-corp. If you have the latter, I would actually suggest having a tax professional assist.
     
  4. ThoracicGuy

    Physician

    Joined:
    Jun 11, 2013
    Messages:
    8,070
    Likes Received:
    17,377
    Status:
    Attending Physician
    An S-Corp is not likely to give you much benefit compared to a sole proprietorship. With the new tax law for 2018, though, this could change. I sure hope you set up a solo 401k to be able to put part of your 1099 earnings in.
     
  5. Mman

    Mman Senior Member

    Joined:
    Mar 22, 2005
    Messages:
    4,025
    Likes Received:
    1,605
    Status:
    Attending Physician
    Not that I care one way or the other what you do, but for the sake of discussion I find it hard to believe it'd cost you more than a few hundred $$$ to have a CPA do your taxes for you and offer advice throughout the year as needed. I find it dirt cheap myself.
     
  6. GonnaBeADoc2222

    Joined:
    Oct 31, 2008
    Messages:
    307
    Likes Received:
    295
    Status:
    Attending Physician
    Honestly, just get a CPA. I did my own taxes in residency when I was W2 using online software, but now that I'm 1099, I just trust this more to an accountant (even though I'm sole prop). Plus over the past year, I've bounced lots of questions off him. You won't (or shouldn't) spend that much money - and you can write it off as business expense on Schedule C. Can you figure it out? - sure. But is it worth your time / stress wondering if you did it correctly?

    Second that you need to open an individual 401k - can make both employee and employer contributions for a max of 53k/yr. Do not open SEP IRA as this will negate your ability to contribute to a backdoor roth IRA.
     
  7. dpmd

    dpmd Relaxing
    Physician

    Joined:
    Sep 14, 2006
    Messages:
    18,097
    Likes Received:
    25,058
    Status:
    Attending Physician
    I am a sole proprietor as well as owner of several rental properties so I have used various versions of turbo tax over the years (premier, home and business, self employed) and they are always very straightforward. I don't mind taking time to read tax publications and peruse the forums on turbotax to make sure I am paying as little as possible because I find it interesting and has done my own taxes since I first started paying back when I had a paper form and the paper booklet to do it off of. I saw no benefit to incorporating though so I can't answer the question about how it will work with that.

    I will say that for a few years I did things with my husband as a participant in the business so I could fund a solo 401k for him and figuring out exactly how to report that was not as straightforward as I would have liked. I haven't been audited so I can't tell you if what I ended up doing was the right way or not but there are some nice features in TurboTax that helped (like being able to create 1099s for others if needed)
     
    tyrionlannister00 likes this.

Share This Page