W2 vs 1099 Income - Why 1099 is Better for Taxes

[@fragtagninja1633]

Pretty sure 1099 is taxed at a higher rate than W2. You also aren't covered by workman's comp if injured.

[@mycpacoach]

Both are taxed according to individual income tax brackets www.nerdwallet.com/article/taxes/federal-income-tax-brackets

[@fragtagninja1633]

@@mycpacoach that's not what I meant and you know it.

[@alxCPA]

Hi Fragtag, you're on point with this - 1099 income is subject to self-employment taxes (15.3%) compared to W2 income payroll taxes (7.65%). The federal income tax is the same but you are correct the self-employment tax is double for 1099's.