[ikonos]

Hi,

I have few questions about C2C and 1099.

1) If I am incorporated and working as the sole employee of my company, Can I deduct part or any amount of the money I pay for medical insurance?
2) How can I contribute to 401K? Is it plain tax deferred contribution up to some amount? Or can I do company match etc as well to myself?
3) How do I set aside money for Healthcare spending account?
4) Can I get my travelling expenses reimbursed from the company that contracted my company? Or I have to do a per diem rate included in the actual rate of the contract?


Appreciate your responses.

[AtlantaTaxExpert]

1) YOU cannot deduct the costs. The corporation, however, can deduct these costs.

2) 401K contributions are capped at $15,000, with a cap on company matches (not sure how that is capped). Just remember, the law says that if you do it for yourself, you HAVE to do it for every employee of the corporation.

3) That is a separate level of expertise that I do not have.

4) I recommend that you enter that into the bid itself. It's a lot simpler.