NP & 1099 Taxes

The minute you take 1099 work, you're running a business in the IRS's eyes. That's not a bad thing. It just comes with rules.

Nobody's withholding for you

On 1099 income, no taxes come out of your check. You owe income tax plus self-employment tax (Social Security and Medicare for both sides) on your profit. That's the April surprise a lot of people get.

Quarterly estimated payments

If you expect to owe, the IRS wants you to pay during the year, usually in four estimated payments. Miss them and you can owe a penalty. We'll calculate what to set aside.

Expenses you may be able to deduct

When you're self-employed, ordinary business costs can come off your 1099 income. Depending on your situation that can include:

• License renewals, certifications and DEA registration
• Malpractice insurance
• Continuing education and conferences
• Professional memberships
• Equipment, software and a share of your phone
• Mileage between work sites (not your regular commute)
• A home office used only for your business

Retirement can lower your bill

Self-employed people can set up their own retirement plans and may be able to deduct what they put in. Ask us whether it makes sense for you.

Your own practice? Keep your books clean

If you run a practice or side business, we can do your bookkeeping all year so tax season isn't a shoebox of receipts.