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best books for 1099 tax reduction

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  • best books for 1099 tax reduction

    I've seen the books list that wci has, but looking to dig deeper into how to manage a high income 1099 business. particularly looking at locums.
    what do I need to be aware of and how to minimize taxes, etc

  • #2
    I don’t know of a book addressing 1099 tax reduction offhand. You can find a lot of good posts online, which may be enough if you are going to DIY.
    Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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    • #3
      There is unlikely to be a book specifically about 1099 business income deductions. This is because such income is reported on Schedule C, where business expenses are also deducted. The expense deductions available are the same as any other sole proprietorship.

      The real problem with locums is that there are usually very few eligible deductible expenses. Unless you travel to or from W-2 employment or multiple locum assignments, your commuting and vehicle mileage/expenses are not deductible. Even the home office deduction is problematic unless you can prove the need for locum related activity at home.

      See IRS Publication 535 for what expenses are eligible to be deducted. For most 1099 locum independent contractors it is small change.

      Your biggest bangs for the buck is to maximize:
      • HSA contributions (if an HDHP is cost effective)
      • One-participant 401k traditional employee deferrals and employer contributions*.
      • Self-employed health insurance deduction provided you are not eligible to covered under you or your spouse's group health insurance plan.
      *Although if your taxable income makes you eligible for the QBI deduction, traditional employee deferrals and employer contributions reduce your qualified business income and thus QBI deduction.

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