Beerlight 0 #1 January 25, 2007 ok, I have a Roth IRA. I owe the IRS $1400. A friend of mine said I could also open a Traditional IRA and dump money in it, thus offsetting some of the payment to the IRS. is that doable???? Can you have both? Quote Share this post Link to post Share on other sites
freeflir29 0 #2 January 25, 2007 You can have both. However.........you really have to check with a CPA to have them evaluate your situation. Lots of different rules depending on how much you make. Quote Share this post Link to post Share on other sites
Slappie 9 #3 January 25, 2007 You can have both and as Clay sates, you really need to talk to a CPA and see if it will help you this year. I don't think it can. "Find out just what any people will quietly submit to and you have found out the exact measure of injustice and wrong which will be imposed upon them." Quote Share this post Link to post Share on other sites
Thanatos340 1 #4 January 25, 2007 Quoteis that doable???? Can you have both? Yes but like Clay said, Speak to a CPA. You can deposit money into an IRA up to April 17th this year and claim that on your 2006 Tax return. I help a friend do their Taxes last year in almost your exact situation. She did her Taxes first and found she owed $1,200. I helped her redo them and had her move $3,500 from Savings to an IRA and she ended up with a $800 return instead (A difference of $2000 in her pocket just for moving funds from one account to another). Quote Share this post Link to post Share on other sites
ACMESkydiver 0 #5 January 25, 2007 Quoteok, I have a Roth IRA. I owe the IRS $1400. A friend of mine said I could also open a Traditional IRA and dump money in it, thus offsetting some of the payment to the IRS. is that doable???? Can you have both? Years and YEARS ago when I sold those things, YES...you could contribute to an IRA in January and still count it towards last year's contributions. But you are talking tricky stuff...you'll need to talk to a professional.~Jaye Do not believe that possibly you can escape the reward of your action. Quote Share this post Link to post Share on other sites
freeflir29 0 #6 January 25, 2007 QuoteI don't think it can. Depends on the situation. IIRC if you haven't contributed over the max you have until 15 April to make contributions. Putting money in a traditional IRA COULD lower the taxable income and effect how much you owe. To lower it from $1400 to zero would take putting A LOT of money in though. Since I am math stupid.........if you owed $2000 and wanted to lower your tax to zero.......you'd have to put in $20,000 (which you can't do most likely) to lower your tax to zero. At least that's the truth as I know it. I'm dumb and could be completely wrong though. Quote Share this post Link to post Share on other sites
Thanatos340 1 #7 January 25, 2007 Quoteyou could contribute to an IRA in January and still count it towards last year's contributions Not just January. You can contribute to an IRA (Roth or Regular) all the way up until the deadline filing (April 17th this year) and count it towards the previous year. Quote Share this post Link to post Share on other sites
wildblue 7 #8 January 25, 2007 Max is $4,000 this year.it's like incest - you're substituting convenience for quality Quote Share this post Link to post Share on other sites
freeflir29 0 #9 January 25, 2007 QuoteMax is $4,000 this year. But what if you are over 55? Can't you make "catch up" payments. Needless to say........this is tax law. Ask a pro. No I said a PRO..........stay the hell away from H&R Block!!!!!! Or any other Tax Prep in a box place! Quote Share this post Link to post Share on other sites
ACMESkydiver 0 #10 January 25, 2007 QuoteQuoteyou could contribute to an IRA in January and still count it towards last year's contributions Not just January. You can contribute to an IRA (Roth or Regular) all the way up until the deadline filing (April 17th this year) and count it towards the previous year. Yes that's right. ~Jaye Do not believe that possibly you can escape the reward of your action. Quote Share this post Link to post Share on other sites
wildblue 7 #11 January 25, 2007 QuoteQuoteMax is $4,000 this year. But what if you are over 55? Can't you make "catch up" payments. Needless to say........this is tax law. Ask a pro. No I said a PRO..........stay the hell away from H&R Block!!!!!! Or any other Tax Prep in a box place! Yeah, over 50 and you can contribute an extra $1,000. Whoopee. Keep in mind, you're really just deferring the taxes on that money - and actually you'll probably end up paying more in taxes on it later on, especially if you're younger. But that depends on a billion different things - talk to a professional. Also, while you can have both, that doesn't mean you can dump $4,000 into both. So if you've already made contributions to your Roth IRA this year (tax year 2006) then subtract that from the $4,000 max. You're probably better off trying to find other deductions. Just depends on your whole situation. I'm not a professional, I just work with a bunch of them it's like incest - you're substituting convenience for quality Quote Share this post Link to post Share on other sites
Beerlight 0 #12 January 25, 2007 Thanks everyone.... I'll consult my old tax prep person. Keep yo head down Clayman..... My cuz was over there w/you. Did 2 yrs and now he's doing a tour in Afghany. K9 Associates? i think is his contractor..... Explosives sniffer.... Buck Quote Share this post Link to post Share on other sites
