Have a Tax Question? Ask a Tax Expert
Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.
How are you today?
The first thing you can do, is contact your state's board of accountancy to get a listing of licensed professionals in your area.
From that list, find the ones that have offices (some CPAs work in industry, and won't have an office) by reviewing your local yellow book
Run a check with the board of accountancy to make sure their license is in good status. You can also search to ensure that they have not had any disciplinary issues.
I am fine. How are you? Thank you.
After you find a couple of professionals, then you can start asking them questions
How long have they been in practice?
Do they specialize in any type of industry?
Do they provide primarily tax advice, or are they also auditors?
Find one that works with companies your size
great! Thank you! what should I expect to be charged for a consultation?
once I find an accountant.
Some will talk to you initially for free. I wouldn't pay more than $250.
excellent! Thank you so much!
You're welcome. Is there anything else that I can assist you with today?
Is there anyway I could compare my w2 effective tax rate to the 1099 situation on my own?
Your income tax should be the same, it's your self employment tax that will be different.
Take the Social Security and Medicare payments on your check stub and double them...and that's roughly your self employment tax
if you are getting paid the same.
what about child credits and interest deduction, I can't take those if I am LLC or s corp?
You can also play with the TurboTax Taxcaster, HERE
No, you will still be able to take all the same deductions as an LLC or S Corp
ah nice! Thank you!
have I asked too many questions yet?
No you have not :-)
An S Corp will help you minimize your employment taxes. You will pay yourself a salary from the S Corp, and you only owe employment tax on that wage.
I guess my biggest concern is that my take home is the same or better if I go 1099. I will have to buy health insurance. i suppose the accountant will be able to run the scenarios?
They should be able to run all the scenarios for you with more information
I typically try to get W-2 gigs where I can. But, that's just my preference
great! You have been very helpful! Worth the money! Thank you!
Some like the 1099 gigs because you can write off various expenses
I have to shop for HI that has a certain benefit. W2 right now, not cutting the mustard with the Health insurance
I see. It is hard to get good healthcare coverage any more.
Hopefully they nix that awful healthcare bill.
I hope the next person in office does away with it
actually, it could work to my benefit the way it is structured in WA, that is why I want to switch
That's good :-) Glad it's helping some out! Most my clients are getting hurt by it
sorry to hear that.
It's fine...things change...you just have to roll with the punches and make the best business decisions possible for the climate.
thanks again. I think I have what I need. very true. Take care. :-)
You too. If you would, please take a moment to rate my response as "excellent" so that I may receive credit for assisting you today
You got it!