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1099 workers also get to expense a lot more stuff from their taxes than employees (I think... please correct me if I'm wrong).
by OmarIsmail 9y ago
1099 workers also get to expense a lot more stuff from their taxes than employees (I think... please correct me if I'm wrong).
- justboxing 9y ago> 1099 workers also get to expense a lot more stuff from their taxes than employees Correct. As of 2012, deductible expenses can include health insurance premiums, office supplies, auto and travel expenses, a portion of home rent or mortgage payments, and a portion of utility costs. IANAL/B yes, the HomeHero 1099 caregivers could've reduced their taxable income by rightfully claiming auto and travel expenses to and from the client, and if they were using their residence to do extra work for client (like research or preparing food etc, then they can also deduct business / home-office expenses. Related Reading: https://turbotax.intuit.com/tax-tools/tax-tips/Self-Employment-Taxes/Top-Tax-Write-offs-for-the-Self-Employed-/INF18049.html https://turbotax.intuit.com/tax-tools/tax-tips/Self-Employme...
- gnicholas 9y agoSure, that's because they're unlikely to be reimbursed, compared to employees. I believe that employees can get reimbursed for expenses also, but only after the "unreimbursed expenses" exceed a percentage of adjusted gross income. I think it's a 5% threshold, but I haven't checked in years.