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Benefits of 1099

1099-benefits

A Guide to Understanding 1099 Jobs

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.

1099-benefits

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

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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.

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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.
What's a 1099 worker or employee?

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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

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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.
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