I am self employed,and am filing schedule C with Turbo Tax for the first time this year.Are the premiums that I pay into my Roth IRA deductable?Please don't answer if you really don't know.Thanks.
2007-03-19 08:57:48 · 5 answers · asked by Cheese 5 in Business & Finance ➔ Taxes ➔ United States
http://www.irs.gov/publications/p590/ch01.html#d0e1703
This is from the IRS website.
Hope it helps.
Have you checked into the SIMPLE plan for Self-Employed who are doing a catch-up on their retirement?
Good Luck & Bless
2007-03-19 09:04:40 · answer #1 · answered by Wood Smoke ~ Free2Bme! 6 · 1⤊ 0⤋
No Roth contributions are not tax deductible. Since you are self-employed, however, you should look into a SEP retirement plan, where the contributions ARE tax deductible, and the contributions can be larger than IRA contributions. You would be able to save in self-employment taxes as well.
http://www.irs.gov/pub/irs-pdf/p560.pdf
2007-03-19 18:31:05 · answer #2 · answered by tma 6 · 0⤊ 0⤋
You can't deduct the contributions. However, depending on your household income, you may qualify for a retirement savings contribution credit, which can be very valuable. Look at this form to see if you qualify: http://www.irs.gov/pub/irs-pdf/f8880.pdf.
My husband and I have received this credit each of the past four years, and it has essentially eliminated our entire federal income tax burden (except for social security and medicare, of course).
2007-03-19 17:32:33 · answer #3 · answered by elmo13595 2 · 0⤊ 0⤋
No they are not as the interest or dividends you earn on a Roth IRA is not taxable, hence the premiums cannot be deducted.
2007-03-19 16:01:53 · answer #4 · answered by Akbar B 6 · 0⤊ 0⤋
No, Roth contributions (they're not premiums) are not deductible. However, when you eventually withdraw the money from your Roth at retirement time it will be totally TAX FREE at that time.
2007-03-19 16:01:49 · answer #5 · answered by Bostonian In MO 7 · 2⤊ 0⤋