I just started as a 1099 this past may. do date, i haven't paid any taxes. i'm currently incorporating a company (c corp) and the filing should be complete at the end of october. is there anything i can do to lesson my 1099 tax burden by using my new c corp?
2006-10-17 05:14:37 · 1 answers · asked by T A 2 in Business & Finance ➔ Small Business
Nope, there isn't any difference as far as your tax liability.
Whether it is a c corp of one person or as a consultant, you will be paying tax as self-employed person.
There might be more room on the deduction side, as some expenses can go directly into reducing income for the c corp versus an un-reimbursed job related expense on Schedule A (which is subjected to a 2% floor of your adjust gross income). But this is fairly minimal.
If you have a existing tax liability of at least $1000 on your 1099, you should file a estimated tax payment on January 15th to avoid penalty.
Best wishes.
2006-10-17 12:42:18 · answer #1 · answered by JQT 6 · 0⤊ 0⤋