@arc.ledger: 1099 vs W2 — this one difference can completely change how much tax you pay. A lot of people think it’s just about how you get paid. It’s not. It’s about who is responsible for the taxes. If you’re W2: Your employer withholds taxes from every paycheck. They also pay half of your Social Security and Medicare. You just file your return at the end of the year. If you’re 1099: No taxes are taken out. You are responsible for everything — income tax + self-employment tax. That’s roughly 15.3% extra most people don’t expect. This is where people get into trouble. They earn money like a 1099… but spend it like a W2. Then tax season comes and they owe thousands. But here’s the part most people don’t know: If you’re 1099, you can deduct expenses: • mileage • home office • phone • software • business-related costs That can significantly reduce your tax bill — if done correctly. So it’s not about which one is “better.” It’s about understanding your situation and planning ahead. Quick rule: W2 = simple, predictable 1099 = flexible, but requires planning If you’re not sure which one you are, or you’ve been getting 1099 income and never set money aside, it’s better to fix it early than deal with surprises later. I see this mistake all the time. ⸻ If you want help understanding your situation, you can book a quick call. Link in bio. ⸻ #1099 #w2 #taxes #selfemployed #SmallBusiness

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Thursday 02 April 2026 09:31:29 GMT