TheGrog wrote:Just be aware that this may well end up in court depending on how solid your 'I'm an employee' argument is.
MilesR wrote:Well in that case (300k on 1099), keep in mind you'd only be fighting over the employer's share of FICA which would be about $11k. Being in the higher brackets, I'm sure you could scrounge up $30k of deductions to save enough income tax to make it a wash. Obviously, you can't deduct home office, mileage, etc if you go employee route, but you can on a sch C. Then also get a SE health insurance deduction, and why not do a SEP while you're at it (assuming on extension). Then the TP would be better off and it wouldn't matter. No fighting and extra stress needed.
Also: if the TP or family had covid during 2021, go for the tax credit for SE sick leave too. This wouldn't be available if you fought over being an employee.
ItDepends wrote:Pay the SE tax, find some legitimate deductions to offset the difference from the FICA that would be paid as a W2 employee anyway.
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