Tax Benefits of Network Marketing – W2 Income vs 1099 Income

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w2 vs 1099 income There are many benefits to network marketing but one benefit that is overlooked and not talked about much are the tax advantages.

In network marketing, you are a 1099 Independent Contractor VS a W-2 Employee wage earner.

The tax benefits of 1099 income vs W-2 income are huge! As an independent contractor and receiving 1099 income in network marketing there is big list of deductions on the Schedule C that the IRS lets you take to offset income.

As an employee and receiving W-2 income the IRS lets you take deductions on the Schedule A but if you compare the deductions between the Schedule C and the Schedule A you will quickly begin to understand why having your home based business makes sense.

Below is a list of items that are tax deductible by simply starting a home based business in the network marketing profession.

  • Your computer
  • Your Internet connection
  • Your long distance and cell phone service
  • A percentage of your rent or mortgage
  • The initial investment or the start-up costs you pay when buying one of any companies starter packes
  • Product samples
  • Monthly product auto-delivery: click her for details
  • Your vacations when combined with the appropriate amount of business
  • Promotion materials
  • Portion of car expenses
  • Office equipment
  • Meals
  • Entertainment
  • Personal growth materials, books and seminars

In conclusion, it is hard to put a positive spin on paying taxes. It always hurts but we all have to do it. The good news is that by joining any network marketing company there are tax deductions that you would not have been able to deduct if you did not have a home based business.

P.S. - Always consult with a tax professional.

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About the Author: Tyler Ford

Member Since: 05/06/2010

I'm a Distributor For:: ViSalus Sciences

Industry: MLM

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