Q: I have both a W2 & 1099 from same employer. What kind of deductions can I take on the 1099?
I'm a physician & my W2 is for 40hr/wk. My 1099 is for weekends, depositions, medical narratives, misc.
A:
As an independent contractor receiving a 1099, you may be able to deduct certain expenses related to your work from your income. These deductions can help lower your tax liability and reduce your taxable income.
Some common deductions that may be available to independent contractors include:
Home office expenses: If you work from home, you may be able to deduct a portion of your home office expenses, such as rent, utilities, and internet service.
Business expenses: You may be able to deduct expenses related to your business, such as travel, meals, supplies, and equipment.
Health insurance premiums: If you pay for your own health insurance, you may be able to deduct the premiums you paid.
Retirement contributions: If you make contributions to a retirement plan, such as a 401(k) or IRA, you may be able to deduct those contributions.
Self-employment taxes: As an independent contractor, you are responsible for paying self-employment taxes, which are equivalent to the Social Security and Medicare taxes that are withheld from your W2 paycheck. You may be able to deduct a portion of these taxes on your tax return.
It is important to keep detailed records of your expenses and consult with a tax professional to determine which deductions are available to you and how to properly claim them on your tax return.
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