1099 contractors can earn ~7% more by reporting their expenses.

tl;dr: If you earn considerable 1099 income in the US, report your business expenses to the IRS. Federal Income Tax Tariffs funded most US government spending until 1913. 0%25%50%75%100%1850190019502000 CustomsExciseCorporateIndividualPayrollOther The composition of US federal receipts, via census.gov and whitehouse.gov. After the 16th Amendment legalized federal income tax, Congress levied it via the 1913 Revenue Act: a 1% income tax on high-earners (top ~2% of households). 0%25%50%75%100%1850190019502000 Owe no federal income taxOwe federal income tax Share of US households owing no federal income tax, via IRS SOI and Tax Policy Center. To finance participation in World War I, the US expanded federal income taxation via the 1917 War Revenue Act. The government required entities to report income-like payments (i.e. interest, rent, dividends, wages) to the Bureau of Internal Revenue (which later became the IRS). The form for reporting such payments became known as Form 1099. It goes…