my parents still claim me and i am a student with less than 5000 in income
2007-02-10 06:41:13 · 4 answers · asked by SWANY 2 in Business & Finance ➔ Taxes ➔ United States
Contributions to a Roth IRA are not deductible on the tax return, If you contributed to a Tradional IRA then you would be able to claim it, So no a Roth would not increase your refund
Roth contributions are not going to result in the reduction of tax owed or result in more of a refund
2007-02-10 06:45:59 · answer #1 · answered by Anonymous · 2⤊ 0⤋
Contributions to a Roth IRA will not affect your tax bill one way or another. Unlike a traditional IRA, you do not get a deduction for contributions to a Roth IRA. The benefit of a Roth IRA is that the earnings accumulate tax-free and are NOT taxed when you make withdrawals after age 59 1/2.
2007-02-10 15:11:02 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 1⤋
Most likely you don't have to pay any tax in your income. Roth IRA does not give you a tax deduction like the traditional IRA but if your $5000 is "earned" income by all means invest in a Roth IRA, it will grow tax free for ever.
2007-02-10 14:53:43 · answer #3 · answered by lm050254 5 · 1⤊ 2⤋
What's with the thumbs down for lm? That is an excellent, very sensible piece of tax planning. No point in getting a tax deduction when you have zero taxable income.
2007-02-10 16:06:45 · answer #4 · answered by skip 6 · 0⤊ 2⤋