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So this year was a little unique for me since I had severance from a previous company and I also moved states (I had 4 W2s from only "2" companies). Due to the extra income I couldn't deduct the few normal things I usually do (i.e. Student Loan interest and IRA contributions) so I am/was stuck with ~800 dollars owed for federal. I filed for an extension and put 100% towards it for now. Bottomline: Is there a reasonable expectation that hiring a professional will cover the amount I'd have to pay him? Extra details/Other things related to filing: A little interest on checking (tiny) some dividends on investments (tinier) Student loan interest (significant, but unclaimed due to limitations) Moved state and had ~2wk of unemployment (untaxed) from my previous state Additional: I own no property; collect no rent; bought no new cars; just about any of the additional options is "no". I'm planning on hiring my friend's advisor, but I'd appreciate any other insight.
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Apr 16, 2011 22:35
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| # ¿ May 8, 2024 09:51 |
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Captain Beans posted:For example is there any specific reason why you are making contributions into a traditional IRA(you mentioned the deduction for it) instead of a Roth IRA(pay the tax now)? If you made enough money to have things like student loan interest phase out your paying taxes at a 25%+ level. Tax rates are actually pretty low historically, so the chance of them being higher when you retire in 30-40 years is pretty good. Might be better to pay tax on it now and be able to withdraw it tax free in the future. Well I didn't contribute to an IRA this year because of the reasons you and I stated. I only wish I had enough foresight to know I wouldn't be able to deduct then I would have maxed out 401k contributions instead. C'est la vie.
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Apr 17, 2011 14:30
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