1099 calculatro??

  1. does anyone out there have a formula or any kind of means to dertermine how what Ill net after taxes and all bennies on a 1099 job
    for expample job pays 225000 1099 can we translate that into take home after I pay all the crap.. dental, health, malprac, retirement, vac, taxes..
    thanks
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  2. 6 Comments

  3. by   OC_An Khe
    There is no one formula. Best bet is to talk with CPA. But in general you need to pay both parts of FICA and medicaid taxes. Your individual tax rate depends totally on your own individual situation and what business expenses you will also generate. Do you want to set up your own retirement account SEP KEOGH, defined benefit etc. As you can see it can be complex so see an accountant, the accountants fee is deductible against your 1099 income.
    Although seems complicated and yoou need to be a good record keeper I worked for many years under 1099 and had no problems with it.
  4. by   Myxel67
    Your Social Security taxes won't be double what they are now. It's about 1.5 times what an individual pays. The best part about having your own business is that so many of your expenses will be deductible. So work with that accountant, figure out how much income you need, then defer as much income as you can with a retirement plan.
  5. by   dfk
    i have heard that a good CPA can make ALL the difference. the hard thing in this business is that with a 1099, normally, many if not all things can be written off as part of a business, but with being a CRNA, i'm not sure that completely applies. granted, you can do some writing off, but not sure. i have heard that to not take a 1099 would be rediculous, but again, that is coming from someone unbeknownst to the inability to write everything off as a regular business could/would. but, i agree... talk to one/several CPAs and see what they think before taking the leap. besides, that 225K/yr i'm sure would equal out to a fair 165/yr paper-free W2 job...
    just my thoughts...
  6. by   sandman
    Hey Matt. It's been a while. Shoot me a PM. I have been working 1099. Maybe I can help.
  7. by   GmanRN
    Quote from dfk
    talk to one/several CPAs and see what they think before taking the leap. besides, that 225K/yr i'm sure would equal out to a fair 165/yr paper-free W2 job...
    just my thoughts...

    Are you saying that it costs 50 - 60K per year to do 1099 work? I just dont see it.
  8. by   dfk
    Quote from GmanRN
    Are you saying that it costs 50 - 60K per year to do 1099 work? I just dont see it.
    not sure. but if you take roughly 30% from the 225K, about 65K would be deducted, and you would end up with about 160K. so, i don't think i'm too far off.

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