DISQUS

Consumerism Commentary: Income Taxes: Done and Over With

  • klerg · 2 years ago
    Hey Flexo. Just curious RE: your SEP-IRA:

    I've got a VERY small amount of side income that I'm claiming on a Schedule C for 2007 (maybe $3000). How much can I put in the SEP? 15% of what I claim on a Schedule C can go into it? Or can the full wack go in?
  • Flexo · 2 years ago
    Klerg: 25% of your income from your Schedule C can be invested in your SEP IRA up to $44,000 for 2006, above and beyond your regular (Traditional/Roth) IRA limits.

    Here's the handy calculator I use.
  • klerg · 2 years ago
    The calculator helps a ton! thanx much!

    Just so I'm clear, I can max out my Roth for 2007 ($4000) and still put moolah in the SEP?

    thanx again for your help!
  • Flexo · 2 years ago
    That's right. When you make the SEP contribution, as long as you make it as your employer (your brokerage should let you choose to invest as the employer or as the employee) it does not count towards your Traditional/Roth IRA maximum.

    (I am not a financial advisor, and I only know this because I went through the process myself this year and a year ago.)
  • klerg · 2 years ago
    Excellent! Thanh VERY much for your help!
  • NCN · 2 years ago
    Hey Flex,
    Just wanted to comment on the site re-design. It looks great!
    NCN
  • Flexo · 2 years ago
    NCN: Thanks!
  • klerg · 2 years ago
    Sorry to keep asking questions...

    I live in NJ too. Do you know of an online calculator for estimated state taxes? Or did you automatically just pay 1/3 of what you paid the feds to the state?
  • Zachary · 2 years ago
    I got my taxes done really early this year. Much better than scrambling to do them last-minute!
  • Jonathan · 2 years ago
    I'm jealous!

    I haven't even gotten around to filing my extension yet.