no matter if he is a W2 employee or a 1099 worker who didn't have any business expenses to deduct against it, the answer about the roth ira is the same, which is he can contribute the whole $1671 he earned. you don't have to worry about the taxes or standard deduction when figuring how much is allowed to contribute.
when people have a real business, their operating expenses are deducted from their profits before deciding the taxable income and therefore, the ira contribution. but since your situation has no expenses, the total amount he was paid is the same as the total amount you can put in the roth ira.
when people have a real business, their operating expenses are deducted from their profits before deciding the taxable income and therefore, the ira contribution. but since your situation has no expenses, the total amount he was paid is the same as the total amount you can put in the roth ira.
Statistics: Posted by cchrissyy — Sun Feb 16, 2025 12:41 am — Replies 10 — Views 375