- Joined
- Dec 16, 2006
- Messages
- 170
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- 35
I am potentially going from a salaried position to an independent contractor (long term locums) position in 2021 (meaning going from W2s to 1099s). I expect an annual independent contractor income in the $250-300K range. I'm wondering if I should create an LLC or a PLLC (or some other business entity) so as take advantage of the Section 199A rule (Qualified Business Deductions). In such a case I would be the sole employee of the business entity, and it would only be for tax purposes, not for any form of legal protection. I'm very new to all this, but from what I've read, on the one hand, physicians don't qualify for this deduction, yet some physicians have claimed it. Also, it seems that if your total taxable income (as a single taxpayer) is over $207,500, the deduction gets phased out. While I hope I will earn more than this, I don't know for sure. Has anyone else successfully used Section 199A? It seems very complicated; is it worth doing?