Individual retirement account income tax treatment. See links below to jump to relevant parts of IRA video. 0:35 Introduction & What is Compensation? 11:25 What’s New & Remainders 23:31 Individual Retirement Annuity 27:38 Simple IRAs 30:12 Simple Employee Pension (SEP) 33:03 How Much Can Be Contributed? 34:40 General Limit 41:39 Kay Bailey Hutchison Spousal IRA Limit 44:37 How Can a Traditional IRA Be Opened? – Filing Status 49:23 How Can a Traditional IRA Be Opened? – Maximum Contributions 53:10 When Can Contributions be Made? 1:05:37 How Much Can You Deduct? 1:11:57 Are You Covered by An Employer Plan? 1:25:45 Limit if Covered by Employer Plan 1:43:33 Tax Software Limit if Covered by Employer Plan 1:50:10 Figure (Calculate) Reduced IRA Deduction & Reporting Deduction Contributions 1:54:12 Nondeductible Contributions 2:05:33 Example – Worksheet for Reduced IRA Deduction for 2018 2:13:29 What if You Inherit and IRA? 2:22:58 Can You Move Retirement Plan Assets? 2:25:28 Trustee to Trustee Transfer 2:28:00 Can You Move Retirement Plan Assets? Rollover 2:41:11 Time Limit for Making a Rollover Contribution 2:55:41 Rollover From One IRA Into Another 3:11:09 Rollover From Employer’s Plan Into an IRA 3:28:46 Rollover Chart 3:37:54 Transfers Incident to Divorce 3:44:39 Converting From Any Traditional IRA Into a Roth IRA 3:54:21 When Can Your Withdraw or Use Assets? 3:57:24 Contributions Returned Before Due Date of Return 4:03:15 Prohibited Transactions 4:07:09 Exempt Transactions 4:10:03 Investment in Collectibles 4:15:42 Excess Contributions 4:30:15 Reporting Additional Taxes Publication 334 – Tax Guide for Small Business https://www.irs.gov/pub/irs-pdf/p334.pdf Publication 535 – Business Expenses https://www.irs.gov/pub/irs-pdf/p535.pdf Are You Self-Employed? You are a self-employed person if you carry on a trade or business as a sole proprietor or an independent contractor. Trade or business. A trade or business generally is an activity carried on to make a profit. The facts and circumstances of each case determine whether or not an activity is a trade or business. You do not need to actually make a profit to be in a trade or business as long as you have a profit motive. You do need to make ongoing efforts to further the interests of your business. Limited liability company (LLC). A limited liability company (LLC) is an entity formed under state law by filing articles of organization. Generally, for income tax purposes, a single-member LLC is disregarded as an entity separate from its owner and reports its income and deductions on its owner’s federal income tax return. For example, if the single-member LLC is not engaged in farming and the owner is an individual, he or she may use Schedule C or C-EZ. Sole proprietor. A sole proprietor is someone who owns an unincorporated business by himself or herself. You also are a sole proprietor for income tax purposes if you are an individual and the sole member of a domestic limited liability company (LLC) unless you elect to have the LLC treated as a corporation. Independent contractor. People such as doctors, dentists, veterinarians, lawyers, accountants, contractors, subcontractors, public stenographers, or auctioneers who are in an independent trade, business, or profession in which they offer their services to the general public generally are independent contractors. However, whether they are independent contractors or employees depends on the facts in each case. The general rule is that an individual is an independent contractor if the person paying for the work has the right to control or to direct only the result of the work and not how it will be done. The earnings of a person who is working as an independent contractor are subject to self-employment tax. For more information on determining whether you are an employee or independent contractor, see Pub. 15-A, Employer’s Supplemental Tax Guide. Are You a Statutory Employee? A statutory employee has a checkmark in box 13 of his or her Form W-2, Wage and Tax Statement. Statutory employees use Schedule C or C-EZ to report their wages and expenses. How Do I Pay Income Tax? Federal income tax is a pay-as-you-go tax. You must pay it as you earn or receive income during the year. An employee usually has income tax withheld from his or her pay. If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. Estimated tax payments. You generally have to make estimated tax payments if you expect to owe taxes, including self-employment tax (discussed later), of $1,000 or more when you file your return. Use Form 1040-ES, Estimated Tax for Individuals, to figure and pay the tax. If you do not have to make estimated tax payments, you can pay any tax due when you file your return. For more information on estimated tax, see Pub. 505. What are my options for paying estimated tax? You can pay your estimated tax electronically usin