No. of Recommendations: 1
<<I am looking for ways to reduce the tax burden. Right now, I don't deduct anything - which may be a mistake. I do use my PC occassionally for work, but enough to make a difference with the income I have? I don't know.

Mostly, I was wondering what the IRS says about contributing money to a pretax investment. Because I am contributing 12K this year to my 401k, am I allowed to open and contribute more to a SEP or solo 401k as well? If not - does anyone have any other suggestions for this income?

Thank you very much in advance!

IndyTom
>>


Because you get hit with 15.3% self employment taxes in addition to income taxes on the profits from your self employment, any legitimate expenses you can claim on your Schedule c tax form are very valuable.

auto expences at thirty off cents/mile, office supplies and a wide array of others are easily claimed. Computers costs have special rules.

I'd get yourself a book that includes a discussion on business tax rules and study up, or you will get socked harder on taxes than necessary. And yes, you probably qualify for a SEP, which is easy to open. I'd probably funbd a Roth IRA first if you don't already do so.




Seattle Pioneer
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.