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Hi Folks!

This is my 1st post, so here goes. I have a full-time job and contribute to the max to my 401k ($10.5k for year 2000). I did some moonlighting as a consultant thru the year, will be getting a Form 1099 (I was paid in full) and *gulp* haven't paid any taxes on this additional income (which equals about 30% of my annual salary). My question is: is there some retirement plan (Roth, Keogh, etc.) in which I can dump some of this extra cash I earned in order to minimize my upcoming tax bill?
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You will need to file schedule C for self-employment income.
If there were expenses associated with making this income, you will deduct those (professional licenses, fees, possibly travel and hotel).
From your schedule C earnings, you can contribute about 15% to a SEP IRA. You can open the account with
most brokerages and send them the check.
You can also put in a $2000 IRA contribution, which depending on your income may or may not be deductible, but that doesn't help your tax situation.

Best wishes, Chris
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This is my 1st post, so here goes. I have a full-time job and contribute to the max to my 401k ($10.5k for year 2000). I did
some moonlighting as a consultant thru the year, will be getting a Form 1099 (I was paid in full) and *gulp* haven't paid
any taxes on this additional income (which equals about 30% of my annual salary). My question is: is there some
retirement plan (Roth, Keogh, etc.) in which I can dump some of this extra cash I earned in order to minimize my
upcoming tax bill?


Better look into estimated income tax payments for state and local. Also you will owe social security and medicare tax.

Next est tax payment date is 1/15/01.

Look at irs.gov for publications.
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My question is: is there some retirement plan (Roth, Keogh, etc.) in which I can dump some of this extra cash I earned in order to minimize my upcoming tax bill?

See IRS Publication 560 for information on the retirement savings options you have for your self-employment income and Pub 505 for information about estimated tax payments. You can download both from www.irs.gov.

TMF ExRO
Phil Marti
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About 5 years ago, I did the same thing by consulting on the side. Bit me hard! I should have been smart and done the tax estimation and payments, but didn't. After looking through all this tax, accounting, reciepts, etc etc etc, I decided it just wasn't worth the anguish and my "off work" hours out of my life and the families life.

I don't bother, or else just do bits for free or barter for a chicken or a goose or sack of grain....
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