After President Trump’s new tax reform was implemented this past February 2018, being an independent contractor might be the best option for you this year.
For the longest time, W-2 employees paid lower taxes compared to independent contractors and also received more benefits, but not anymore! The tax new law offers a more direct benefit for independent workers.
You might be wondering how does the new tax reform benefit independent contractors? Well, the new tax law lets “independent” workers deduct 20% of their income before paying the new, lower individual tax rates signed into law by President Trump. As an independent contractor, this will significantly reduce your federal taxable income. The pass-through deduction can easily save you thousands of dollars overall in taxes.
The new tax reform is likely to encourage more people to make the switch from employee to independent contractor. Switching from employee to independent contractor is being considered a top strategy to maximize your future tax deductions. In fact, Intuit, the maker of Turbo Tax, predicts the gig economy will almost double to 7.7 million workers in 2020.
On previous blog posts, we’ve talked about the many benefits of working as a Veryable operator and being an independent contractor. Now, with the new tax reform, the benefits just keep adding up. If you are already a Veryable operator, the new tax form will make you love your work even more than you already do; however, if you still aren’t, now is the time to make the switch to an independent contractor and start to enjoy all the benefits.
If you are tired of working for someone else and you’re ready to make the switch once and for all, become a Veryable operator today! You can get started today by downloading the mobile App from our website: www.veryableops.com. You can also download directly from the Apple store or Google Play, or complete our Web Form if you’re away from your phone. For any questions, please feel free to reach out to the Veryable recruiting team at (214) 310-0424.