Comment Re:I went the other way (Score 4, Informative) 295
Typically contracting you'll make 50-100% more per year (if you keep busy) than you would as an FTE. That MORE than makes up for the extra self-employment tax hit and benefits. You don't have to amortize a computer over 5 years -- write it off the first year as a Section 179 deduction. The rule varies in how much you can deduct each year; it's been rising from $20K up to around $25K now, I believe. One or two years in there it was up to $100K to stimulate small business spending in the economy.
Pay for a CPA to give you advice and do you're taxes. The $1-2K/year you'll spend will MORE than be recovered when they show you how to correctly deduct things, etc.
I've always opted NOT to deduce my home office. It's only 150 sqft of a 3500 sqft house, so I can't deduct all that much, and it's not worth the flags in IRS or the hassle in figuring out how much you have to repay when you sell the house in a few years...
Pay for a CPA to give you advice and do you're taxes. The $1-2K/year you'll spend will MORE than be recovered when they show you how to correctly deduct things, etc.
I've always opted NOT to deduce my home office. It's only 150 sqft of a 3500 sqft house, so I can't deduct all that much, and it's not worth the flags in IRS or the hassle in figuring out how much you have to repay when you sell the house in a few years...
