I was payed 1k for a deposition in 2013. I am a w2 worker but this was side income. Can I take 20% or so and place it in a SEP IRA to reduce tax burden?
Also I earned another 500-1000 in surveys and honoraria. Can this also be used as income towards Sep Ira? Since these surveys are from multiple companies, I do not think I need to pay taxes on this income?
Income outside of work and Sep IRA
Re: Income outside of work and Sep IRA
I am no CPA or tax expert but I am a small business owner. It sounds like you are a sole proprietor and you'd report your income on Schedule C. Those organizations would issue you 1099 and would not have withheld any tax. You would pay taxes on any profit left over after you have deducted expenses. You can contribute approximately 20% of your self employed income to a SEP. You have to account for self employment tax. Vanguard has a great calculator you can use: https://personal.vanguard.com/us/SbsCal ... Controller. Consult your accountant, of course!am wrote:I was payed 1k for a deposition in 2013. I am a w2 worker but this was side income. Can I take 20% or so and place it in a SEP IRA to reduce tax burden?
Also I earned another 500-1000 in surveys and honoraria. Can this also be used as income towards Sep Ira? Since these surveys are from multiple companies, I do not think I need to pay taxes on this income?
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