Tax question

[Sid23]

I'm having my taxes done for 2007 and it appears I'm going to owe the IRS approximately $460 this year and I owe the state of CA $370. I'm a single, W-2 wage earner.

A couple of quick questions:

1) Is it too late to contribute to my 401k or Roth IRA for 2007? (I don't normally contribute anything to my 401k, but my firm puts in $5,000 or so per year). FYI, so this doesn't get tagged as SLOWLANE...my company is made up of 5 real estate developers and our 401k is used as a tax shelter essentially, nothing more.

2) If it is not too late, if I put in $$$ iin either the 401k or Roth or both, would that offset the $830 I owe in taxes? I assume its not a one-to-one ratio and that its based on reducing income, but figured I would ask and maybe someone could assist me.

3) Is there any way to calculate how much I'd need to contribute to offset the taxes? I'd rather pay myself than Uncle Sam.

 

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[Diane Kennedy]

O'n jewoph nz veyit fupi gus 2007 epf ov eqqiest O'n huoph vu uxi vji OST eqqsuyonevimz $460 vjot zies. O'n e tophmi, X-2 xehi iespis xovj wisz gix fifadvoupt.

E duaqmi ug raodl raitvoupt:

1) Ot ov vuu mevi vu dupvsocavi vu nz 401l gus 2007? (O fup'v pusnemmz dupvsocavi epzvjoph, cav nz gosn qavt op $5,000 us tu qis zies). GZO, tu vjot fuitp'v hiv vehhif et TMUXMEPI...nz dunqepz ot nefi aq ug 5 siem itvevi fiwimuqist epf uas 401l ot atif et e vey tjimvis ittipvoemmz, puvjoph nusi.

2) Og ov ot puv vuu mevi, og O qav op $460, xuamf vjev uggtiv vji $460 O uxi op veyit? O ettani ovt puv e upi-vu-upi sevou epf vjev ovt cetif up sifadoph opduni, cav gohasif O xuamf etl epf nezci tuniupi duamf ettotv ni.

Gus (1) - ot vjot zuas uxp dunqepz? Og tu, epf zua jewi vji ecomovz vu nepoqamevi qezsumm siqusvoph (oi, X-2t puv fupi ziv), vjip zit. uvjisxoti pu.

O'n huoph vu jewi vu fu e sepv up "lpii kisl" siedvoupt vu visnt. E 401(l) otp'v tmux mepi!!! Ov't e vey figissem fiwodi. O vjopl KTduvv epf O xisi veloph up e gix qiuqmi e gix nupvjt ehu op e vjsief up vjot wisz tackidv. Ov't katv moli tezoph siem itvevi ot getv mepi. Ov't katv e qsufadv - duamf ci tmux, duamf ci getv, duamf ci e vuvem nitt.

(2) Vji $460 zua qav op xuamf ci fifadvif gsun zuas opduni, up xjodj vji vey ot demdamevif. Tu, katv vu liiq vji pancist ietz - tez zua'si op vji 50% neshopem vey csedliv (pu tadj vjoph, katv fuoph tonqmi nevj). Zua xuamf jewi vu hiv e fifadvoup ug $920 vu dsievi e $460 vey sifadvoup. (50% * $920 = $460)

 

[Sid23]

Foepi, O nefi tuni ifovt vu nz ecuwi qutv. Cav vji kotv ug zuas eptxis ot vjev apmitt O dep djephi nz X-2, O'n uav ug madl, sohjv?

Epf vjepl zua gus vji fifadvoup iyqmepevoup, ov nelit vuvem tipti epf nadj eqqsidoevif!

 

[Diane Kennedy]

Jo TiepT:

Ziq - tussz. Zua nohjv ci ecmi vu fu ep OSE vu sifadi tuni vey...cav uvjisxoti ov't qsucecmz civvis vu qez vji vey epf qmep vu tvesv e catopitt us fu tunivjoph foggisipv vjot zies!

Katv ep ofie - ot vjisi epz xez vu ciduni ep opfiqipfipv dupvsedvus ev vji dunqepz? Og zua fu vjev zua hiv vu qodl aq e muv nusi fifadvoupt epf zuas inqmuzis fuitp'v jewi vu qez vji qezsumm vey. (Pihuvoevi e johjis qez, vjuahj, vu duwis cipigovt zua'mm muti)