Saturday, June 2, 2007

Poor College Student

Good morning. I started an internship a few weeks ago. We get paid on a 'stipend' and will receive a 1099 at the end of the year. I make 555$ a week over the course of 3 months.

I was wondering how to reduce the taxes I will have to pay as much as possible. The job is in my field of study (I am currently a dependant attending college). Also I have roughly an 80 mile round trip drive to work. I am a poor college student and would like to keep as much of my money as possible!

Thanks! Ryan

Hello Ryan,

Your email showed that you found me via my book, Self-employed Tax Solutions. I assume by your question that you have not yet read the book. In it there are explanations for hundreds of expenses, including when you can deduct business mileage. It also explains that about 1/3 of your income can go to taxes if you don't deduct expenses. Here's a jump-start to give you an idea To learn more about what you can deduct be sure to read Is it a deductible business expense? on my website .

Be poor no more. Read. Get information.
-- June

Friday, June 1, 2007

If you are your only client ... you're not self-employed.

June --

As a forex day trader; may I open a self employed 401K account; fund it with whatever the allowable contribution might be - - - and then proceed to conduct the same day trading activity within the confines of the 401K account - - - realizing the tax deferral benefits on any gains?

Thank you. DD

Hello DD,

A 401-K is a pension or retirement account. A 401-k for a self-employed is called a uni-k or solo-k and is only one kind of pension plan available to indies.

In order to be eligible to have a self-employed pension you must be self employed. That's explained at this post Self-employed or Employee: It's more than a name . A day trader -- whether domestic or foreign -- who trades only for himself and does not have a commodities license is not a self-employed.

Good idea but it won't fly.

Best, June

To learn more about indie taxes and Self-employed Tax Solutions please visit