What would my tax be?

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What would my tax be?

I am an independent contractor paying all the applicable taxes including self-employment tax. If I make $4,000 and contribute the entire $4,000 to my 401-K, would I owe any taxes?

2007-01-23 01:37:16 · 2 answers · asked by Brooke22365 4 in Business & Finance ➔ Taxes ➔ United States

I meant to say in my IRA.

2007-01-23 01:43:57 · update #1

2 answers

You still owe social security tax at 15.3% on Schedule SE. The 401K is not deductible for that purpose. On the bright side you get more SS benefits when you retire.

2007-01-23 01:43:08 · answer #1 · answered by spicertax 5 · 1⤊ 0⤋

I think the above answer is incorrect about getting more SS benefits because of the employer/employee FICA.

2007-01-23 15:49:37 · answer #2 · answered by Quixotic 3 · 0⤊ 0⤋