W2 vs 1099

[Radioactive21]

PleAse help. I have a choice. I can either have my employer pay me as w2 or 1099. I have a 401k with 3% match and a employer profit sharing which is about 5-6k some years 3k. It varies. I also have health insurance and medical malpractice insurannce ( that comes out to 20k each) I make in the high 6 figure range. My tax professional says that I probably should opt for 1099 because I get more deductions. Just seem scary to turn away from benefits just so I can have a higher deductions. Does anyone have advice on this matter.
Thanks

[The White Coat Investor]

For emergency docs, I figure you need to be paid about 10% more for 1099 to make sense over W-2. But it isn't too hard to compare. The deductions are worth something, but are tricky to put a dollar figure on. The additional payroll tax and the benefits are really easy to value.

But going 1099 at the same dollar amount is usually a mistake.

One nice thing about being 1099 is you get to choose your own health insurance and retirement plan and it's all deductible. But I'd rather have someone else choose and pay for the plan most of the time unless I'm paid more to do so.

[jfoxcpacfp]

Radioactive21 wrote:

PleAse help. I have a choice. I can either have my employer pay me as w2 or 1099. I have a 401k with 3% match and a employer profit sharing which is about 5-6k some years 3k. It varies. I also have health insurance and medical malpractice insurannce ( that comes out to 20k each) I make in the high 6 figure range. My tax professional says that I probably should opt for 1099 because I get more deductions. Just seem scary to turn away from benefits just so I can have a higher deductions. Does anyone have advice on this matter.

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Depends how much you make and what the differential is for W2 v 1099. Has your tax pro actually prepared a comparison? For example, do you make enough to be able to fully fund a 401k on your own? That would be a nice deduction you don't have access to through your employer. otoh, you will be responsible for all FICA taxes and your employer is splitting them with you now - that's over $10k extra coming out of your pocket. Your employer should be willing to make up at least part of the lost benefits if you go 1099.

W2 and 1099 status is not interchangeable. I'm surprised your employer is making it either-or.