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Off Topic : 1) When Does a software engineer start financial planning for retirement since the our Career span is only 15-20 years on average.
2) How much and which schemes to invest to mitigate the risk?
3) How much do we need for retirement? Tata Consultancy Infosys Mindtree IBM Wipro Capgemini Cognizant HCL Technologies
Quick qstn - I'm receiving HRA of 24075 from my employer but I would like dhow the rent paid as 96k p.a (while filing ITR). Even if I do so, I was only able to get exemption of 24075 from gross. Checking if we can speak to payroll department to increase Actual HRA since I'm actually paying more rent than compared. Will I be able to do so ?Deloitte Newco EY Accenture Genpact KPMG
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1099 (w9) is better because of all the business deductions you can take. But my jobs are definitely split between 1099 and w2 and I wouldn’t turn down something you want to do just because it pays w2.
It's not a huge deal. When I was freelance about half my gigs were W-2. You lose a little tax-wise, but many agencies do W-2. IMO, you'd be screwing yourself more if you refuse to work at places that do W-2
It shouldn’t really “screw you” if they’re withholding the proper tax amounts.
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W9 is far better if you have a corporate set up to take advantage of it. I do, and it helps me keep like 35 or 40% more money as a result. That being said, if you’re just starting out A) you may not have this set up and B) it’s probably better to take the gig and start building your network. Always best to think long term as you build your freelance business.
One good idea that has helped me is to figure out how much you could conceivably deduct at the end of the year. That number is your goal for w9 work. That way, you really lower your tax burden. You can only do this for a few years though before the tax man comes a’knocking.
one benefit of having a mix of w-2 and w-9/1099 is that if you can get your social security annual contribution via w-2 jobs you won’t have self-employment tax towards your social security which is at a higher tax rate. w-9/1099 allows you more business deductions. personally, ilike to have a mix of both w-2 and w-9.
^^^ all very helpful - thanks everyone
read this to understand the benefits of W9 contracts:
https://joinfishbowl.com/comment_hr7wei6ufx