It really depends on the net income you make.
Being a Form 1099 contractor you can deduct all the necessary and ordinary expenses of running this activity.
As a self-employed, you can take any of the deductions incurred in the ordinary course of your business or profession. An ordinary expense is one that is common and accepted in your field of business. A necessary expense is one that is helpful and appropriate for your business. Some of these expenses are listed on Schedule C and are expenses such as office supplies, travel, maintenance, repairs, postage, etc.
You can deduct home office expenses if you are carrying on your business from home. Expenses that you
may be able to deduct for business use of the home may include the business portion of real estate taxes, mortgage interest, rent, utilities, insurance, depreciation, painting and repairs.
Note that You can claim this deduction for the business use of a part of your home only if you use that part of your home regularly and exclusively:
- As your principal place of business for any trade or business
- As a place to meet or deal with your patients, clients or customers in the normal course of your trade or business
Generally, the amount you can deduct depends on the percentage of your home that you used for business. Your deduction will be limited if your gross income from your business is less than your total business expenses.
You can also depreciate computers, furniture, Equipment etc., used for the purpose of business.
If you use your car in your business, you can deduct business mileage that represents your business use of the car.
Please note that If you use the standard mileage rate for a year, you cannot deduct your actual car expenses for that year. You cannot deduct depreciation, lease payments, maintenance and repairs, gasoline (including gasoline taxes), oil, insurance or vehicle registration fees.
On the net earnings you will be subject to self-employment tax at the rate of 15.3%. You will get 50% of it as a deduction from your AGI.
Also, you will owe taxes on income tax on this and other income earned by you and your wife. The tax rate will depend on your overall tax bracket.
Considering the fact that you will be getting $120,000 instead of $90,000- getting it directly may be more beneficial.
Let me know if you have any questions.