Tax Law (Questions About Taxes)/K-1 vs 1099


I've been a1099 employee for decades.  The owners of the business that I send most of my business to think a K-1 would be better for me, but I use a schedule C to write off most of my business expenses.  I know nothing about a K-1. Can you help enlighten me on which may be my best option?  

Thank you!

A K-1 is a document showing the share of profits or losses of a Partnership or S-Corporation.

Unless you are an actual owner of the business, you should not be getting a K-1. If you are an owner and NOT getting a K-1, then something is wrong there, too.

You cannot be a "1099 employee". You either are an employee and get a W-2 with taxes withheld or you are an independent contractor and get a 1099. Depending on the type of work you do, you may be misclassified. It sounds already like the company owners don't have much clue if they are offering you a K-1.  A K-1 recipient cannot get a 1099-MISC except under specific circumstances which are rare.  

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Randall Klein, MBA, EA


I am an expert in personal and small business taxation, including Forms 1040, 1120, 1120S, 1065. I can answer any type of tax question except those that are requesting help in illegal tax evasion. Tax avoidance is legal, however. I do not do offshore trusts, or opt-out of the tax system type of queries.


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