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W-2 vs. 1099: Tax Differences Explained for Gig Workers

Transitioning from a traditional W-2 job to 1099 contracting changes your entire tax landscape. Here is what you need to know about self-employment taxes.

The Self-Employment Tax Burden

As a 1099 worker, you are responsible for both the employee and employer portions of Medicare and Social Security taxes, totaling 15.3%.

The Power of Deductions

Unlike W-2 employees, contractors can deduct business expenses to lower their taxable income, making AI deduction scanners incredibly valuable.

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Gig workers and solo freelancers who hate manual tracking

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