Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 04-06-2014, 01:47 AM
Junior Member
 
Join Date: Apr 2014
Posts: 6
Deducting 401K contributions -- can I in my case?

Hello all,

I am filing as individual, in NYC, and am confused about something regarding deductions.

My situation:
I am essentially a freelancer working in the film & television business. However, I am part of a union, and even though I work on various productions (employed by various production companies) throughout the year, I am paid via a payroll company (actually, 3 or 4 national payroll companies only) and I have taxes taken out of each paycheck, and receive W2's for the jobs I work on. Now, I do also receive a small number of 1099-MISC as a result of certain equipment I own and rent out, but this is a small amount (roughly $3000-$5000 per year total as a result of rentals, which is the 1099-MISC income). The overwhelming majority of what I make is from W2 income.

Additionally, I have a 401K that is set up by my union (IATSE), and I contribute to it, a little bit (say, 5%-10%) for each job I do.

Now, I am being asked if I am "self-employed," as that -- if I understand correctly -- will allow me to deduct those 401K contributions. As I am a payrolled "employee," who received W2's, I didn't consider myself "self-employed." Am I in the eyes of the IRS? Since I have just a handful of rental 1099-MISC's? Am I able to deduct these 401K contributions?

Any help is greatly appreciated



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 04-06-2014, 07:31 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,230
Quote:
Originally Posted by daniel178 View Post
Hello all,

I am filing as individual, in NYC, and am confused about something regarding deductions.

#1;My situation:
I am essentially a freelancer working in the film & television business. However, I am part of a union, and even though I work on various productions (employed by various production companies) throughout the year, I am paid via a payroll company (actually, 3 or 4 national payroll companies only) and I have taxes taken out of each paycheck, and receive W2's for the jobs I work on. Now, I do also receive a small number of 1099-MISC as a result of certain equipment I own and rent out, but this is a small amount (roughly $3000-$5000 per year total as a result of rentals, which is the 1099-MISC income). The overwhelming majority of what I make is from W2 income.


#2;Now, I am being asked if I am "self-employed," as that -- if I understand correctly -- will allow me to deduct those 401K contributions. As I am a payrolled "employee," who received W2's, I didn't consider myself "self-employed." Am I in the eyes of the IRS? Since I have just a handful of rental 1099-MISC's? Am I able to deduct these 401K contributions?

Any help is greatly appreciated
#1;as your rent property that is not real estate, such as vehicles, office equipment or machinery, you must report your 1099 rent income on IRS Sch C and need to pay SECA tax on Sch SE aslongas the amoun ton Sch SE 2/3 is $400 or exceeds $400.

Additionally, I have a 401K that is set up by my union (IATSE), and I contribute to it, a little bit (say, 5%-10%) for each job I do.

#2;You are both an EEfor your W2 and a self employer for your 1099;As you said, as an payrolled EE, who receives a W2, you can deduct your 401K contributions. 401k plans are special retirement plans that are sheltered from taxation by the IRS. The benefit of deducting contributions on a traditional 401k plan is that the contributions are not taxed. This means that the money that would ordinarily go towards paying taxes instead gets invested.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Didnt Work And Had A Fraud Case Now I Owe Or Intent To Levy feb0221 Miscellaneous 3 09-26-2013 01:18 PM
Still need information on special case for Tuition and Fees Deduction leopard Tax Credit 1 04-13-2012 12:01 PM
Excess 401k Contributions notben Miscellaneous 0 02-14-2012 09:43 AM
treatment of capital gain tax in case of slump sale,asset purchase agreement and amalgamtion [email protected] Capital Gains 1 10-31-2010 05:04 AM
10 Tips for Deducting Charitable Contributions Samatg For 2009 0 03-26-2009 11:56 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning