Home › Self Employment Resources › 1099 Benefits
A Guide to

Understanding 1099 Jobs

Tax Form Wizard

Find out which forms you'll need with this tax form recommender.


How would you describe yourself?

Choose as many as you like

Self-employed

Freelancer, independent contractor, etc

Salaried employee

Full-time or part-time W-2 employee

Business owner

LLC, S corp or partnership

The ins and outs of working for yourself

1099 job is a word thrown around a lot in the freelancer, self-employed and individual contractor space. In essence, 1099 jobs can be explained as freelance contracts with self-employed professionals that could be short-term or long-term, based on the nature of the contract. The term 1099 originates from the IRS Form 1099, an information-sharing form sent to the IRS by a contracting party. For example, you work as a freelancer or self-employed individual with a company and get a payment for your services or products; This company is obliged to send a 1099 form to the IRS reporting all the payments sent to you for your work. Similarly, this company also sends a copy to you as a self-employed individual.
Image of text explaining the origin of the term "1099 job" and its relation to IRS Form 1099 and taxes. Relevant for self-employed and freelancers.

Table of contents

Key takeaways:...Read more

What are the benefits of having a 1099 job?...Read more

What's a 1099 worker or employee?...Read more

What are the benefits of a 1099 job?...Read more

Key takeaways:

  • The word 1099 jobs is commonly used to refer work taken up by freelancers and self-employed individuals
  • The term 1099 worker is commonly used to refer to self-employed individuals and freelancers that ultimately use the IRS Form 1099 to file their taxes.
  • One of the major benefits of being a 1099 worker is that you get to be your own boss.
So a 1099 job is more like a gig for a self-employed person that owns a business. Self-employed individuals differ from W-2 employees, as the latter doesn’t receive any 1099 forms. Having a 1099 job means you are your boss, which, although it comes with huge responsibilities, has many benefits. Here, we will look at the pros and cons of being your own boss and how 1099 jobs could be better than a full-time job

What are the benefits of having a 1099 job?

Think of a perfect hero story. Entrepreneurs could be ideal subjects if you look at the number of obstacles to success. You must develop ideas, scale up your business, deal with clients, look for expansion opportunities and accomplish your day-to-day tasks. But, beyond this noise, there are many benefits of being a self-employed entrepreneur, also known as 1099 workers or employees.

What's a 1099 worker or employee?

Just to set the record straight, 1099 employees are not precisely employees, but they are self-employed individuals that could sometimes be referred to as 1099 employees or 1099 workers. This is just common terminology, and if you hear someone refer to you as a 1099 worker, you can forgive them for using this mildly offensive term. It could sound mean to you if you are self-employed to eliminate the employee tag. Since all self-employed individuals have to file the 1099-NEC, the masses have conveniently put 1099-employee or 1099-worker in everyday usage.
Image with text explaining the origin of the term "1099 worker/employee" and its relation to IRS Form 1099 and taxes. No mention of self-employment or freelancers.

What are the benefits of a 1099 job?

The most obvious benefit of being a 1099 worker is that you get to be your own boss. You have the freedom to set your schedule, get significant tax write-offs and many other benefits listed below

Freedom to choose

Pay significantly fewer taxes

You’re in control of your 1099 job

Adjusted Gross Income

A lot of terms get thrown around when it comes to the tax season and your adjusted gross income (AGI) is one of them.

Modified Adjusted Gross Income

Modified Adjusted Gross Income (MAGI) can be found by adding back certain deductions to AGI. Use MAGI to check your eligibility for tax credits.

About Self Employment

Self-employment Simplified – For Freelancers, Independent Contractors & Gig Workers

Freelance Vs Self Employed

Self-employed Vs. Freelancers – What’s Common & What’s Not

About Gig Economy

How the Gig Economy Works for Freelancers | FlyFin

Mortgage for Self Employed

Getting a Mortgage as a Self-Employed Individual | FlyFin

How to calculate your self employed salary

Calculating Your Self-employment Income | FlyFin

What is self employment tax

Self-Employment Taxes | Pay SECA Tax As A 1099 Worker | FlyFin

SECA Tax

How to Pay SECA Taxes the Smart Way

Tax Deductions for self employed

Self-Employed Tax Deductions

Avoid Tax Penalties

How to Avoid Tax Penalties When You’re Self-Employed

Retirement plans for self employed

Retirement Plans for Anyone Self-Employed

Health Insurances for Self Employed

How Self-employed people Choose Health Insurance | FlyFin

1099 Employee Rights

Know Your Rights as a 1099 Employee

1099 and W2 in same year

Is It Best To File 1099s and W-2s Seperately or Together? | FlyFin

Open Business Banking accounts

Opening a Business Account for Professional Use | FlyFin A.I.

Benefits of 1099

A Guide to Understanding 1099 Jobs | FlyFin A.I.

When are 1099s Due?

When is Form 1099 Due? | FlyFin A.I.

What are Freelance Taxes?

The Definition of Freelancer Taxes - Important Date and Forms | FlyFin A.I.

What do Independent Contractors do

Employee Vs. Contractor – A Watch At Their Taxes

Independent contractor taxes in california

Independent Contractor Taxes in California

Top Independent contractor jobs

Top Independent Contractor Jobs

Tax Preparation Checklist

We've compiled a list of things you need to know when you file taxes for your 2023 tax year or need information on the 2024 quarterly tax payments.

Adjusted Gross Income

A lot of terms get thrown around when it comes to the tax season and your adjusted gross income (AGI) is one of them.

Modified Adjusted Gross Income

Modified Adjusted Gross Income (MAGI) can be found by adding back certain deductions to AGI. Use MAGI to check your eligibility for tax credits.

About Self Employment

Self-employment Simplified – For Freelancers, Independent Contractors & Gig Workers

Freelance Vs Self Employed

Self-employed Vs. Freelancers – What’s Common & What’s Not

What’s FlyFin?

FlyFin caters to the tax needs of freelancers, gig workers, independent contractors and sole proprietors. But anyone can file taxes through FlyFin! FlyFin tracks all your business expenses automatically using A.I. to find every possible tax deduction. Then, our CPA team files a guaranteed 100% accurate tax return for you – to save you a couple of thousand dollars and a ton of time on your taxes. Download the FlyFin app and have your taxes filed in less than fifteen minutes, saving time and more money on your taxes than last year, guaranteed.
https://dem95u0op6keg.cloudfront.net/image/PriceCalculator.webp

Expert tax CPAs ensure 100%-accurate tax filing

https://dem95u0op6keg.cloudfront.net/image/AiBrain.webp

A.I. finds every tax deduction, eliminating 95% of your work

https://dem95u0op6keg.cloudfront.net/image/MoneySack.webp

On average users save $3,700

rightCTAImage
Was this tip useful?
happy-active
Yes
happy-active
No