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I filed for an extension in the filing of my 2008 taxes. When is the last date I can get my taxes filed ? Also, can I buy an IRA, and how much would that defer in terms of taxes that are due to be paid. I have no IRA at this time. What is the last date I can buy such an IRA, if that makes sense ?

Submitted: 54 days and 16 hours ago.

Category: Tax

Value: $30

Status: CLOSED

Country/State/Province of question: USA: WA state

Already Tried:
???

Posted by Merlo 54 days and 16 hours ago.

Info Request

Hello Beppo,

Are you self employed or do you work as a regular employee?

Accepted Answer

Hello again Beppo,

Since I have not heard back from you with the requested information, I will answer your question under two scenarios.

First, if your filed for an extension, your filing deadline for your tax return is October 15th, 2009.

As far as opening an IRA and making a contribution for the 2008 tax year, if this would be a traditional IRA, the deadline for making contributions was April 15th. Even though you filed for an extension to file your return, the deadline for making a traditional IRA contribution remains April 15th, so you could no longer make a contribution to a traditional IRA.

If you are self employed and have an SEP IRA, then you are allowed to make a contribution up to your filing deadline of October 15th and still have that contribution apply as a deduction for the 2008 tax year.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you Beppo

Accepts:
Expert:	Merlo
Pos. Feedback:	99.8 %
Answered:	9/28/2009

Accountant

25+ years tax consulting. Specializing in returns for US citizens living abroad

54 days and 14 hours ago.

Reply

Merlo: Thank you. What does "SEP" mean? What is the limit of IRAs I can buy; i.e., $2,000, or $6,000, etc. And, finally, is it dollar-for-dollar that I can "write off" my tax bill, or a percentage of (total) IRA(s)?

Posted by Merlo 54 days and 14 hours ago.

Info Request

Hello again Beppo,

SEP stands for Simplified Employee Pension Plan. This is something that you would set up through your business if you were self employed or had your own company. If you are taxed as a C Corp or an S Scorp, the amount you contribute would be a business deduction. If you are taxed as a partnership or sole proprietor, your deduction is against your personal income. The deduction allowed is the full amount of your contribution.

For the year 2009 you may contribute up to a maximum amount of $49,000 to an SEP IRA.

http://www.sepira.com/

For a traditional IRA, the contribution limit is $5,000 (or $6,000 if you are age 55 or older). The amount you contribute is taken as a direct deduction against your personal taxable income.

Edited by Merlo on 9/29/2009 at 1:01 AM

54 days and 13 hours ago.

Reply

Thank you again, Merlo. Yes, I am self-employed: as a psychotherapist. Not skilled at all vis-a-vis economics, or paperwork, however.

Accepted Answer

Hello again Beppo,

SEP stands for Simplified Employee Pension Plan. This is something that you would set up through your business if you were self employed or had your own company. If you are taxed as a C Corp or an S Scorp, the amount you contribute would be a business deduction. If you are taxed as a partnership or sole proprietor, your deduction is against your personal income. The deduction allowed is the full amount of your contribution.

For the year 2009 you may contribute up to a maximum amount of $49,000 to an SEP IRA. Here is a link to a helpful article that explains more about how an SEP IRA works.

http://www.sepira.com/

Accepts:
Expert:	Merlo
Pos. Feedback:	99.8 %
Answered:	9/29/2009

Accountant

25+ years tax consulting. Specializing in returns for US citizens living abroad

54 days and 13 hours ago.

Reply

A final thank you. Thanks for the quality of your answers, and the speed at which you answered. And a special thanks for the referral article!

Posted by Merlo 54 days and 13 hours ago.

Answer

Thank you Beppo. Let me know any time you need help.

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Question

I filed for an extension in the filing of my 2008 taxes. When is the last date I can get my taxes filed ? Also, can I buy an IRA, and how much would that defer in terms of taxes that are due to be paid. I have no IRA at this time. What is the last date I can buy such an IRA, if that makes sense ?

Optional Information

Country/State/Province of question: USA: WA state

Already Tried:
???

Info Request

Hello Beppo,

Are you self employed or do you work as a regular employee?

Accepted Answer

Reply

Merlo: Thank you. What does "SEP" mean? What is the limit of IRAs I can buy; i.e., $2,000, or $6,000, etc. And, finally, is it dollar-for-dollar that I can "write off" my tax bill, or a percentage of (total) IRA(s)?

Info Request

Reply

Thank you again, Merlo. Yes, I am self-employed: as a psychotherapist. Not skilled at all vis-a-vis economics, or paperwork, however.

Accepted Answer

Reply

A final thank you. Thanks for the quality of your answers, and the speed at which you answered. And a special thanks for the referral article!

Answer

Thank you Beppo. Let me know any time you need help.

Tax

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Related Tax Topics:

Question

I filed for an extension in the filing of my 2008 taxes. When is the last date I can get my taxes filed ? Also, can I buy an IRA, and how much would that defer in terms of taxes that are due to be paid. I have no IRA at this time. What is the last date I can buy such an IRA, if that makes sense ?

Optional Information

Country/State/Province of question: USA: WA state Already Tried: ???

Info Request

Hello Beppo,Are you self employed or do you work as a regular employee?

Accepted Answer

Reply

Merlo: Thank you. What does "SEP" mean? What is the limit of IRAs I can buy; i.e., $2,000, or $6,000, etc. And, finally, is it dollar-for-dollar that I can "write off" my tax bill, or a percentage of (total) IRA(s)?

Info Request

Reply

Thank you again, Merlo. Yes, I am self-employed: as a psychotherapist. Not skilled at all vis-a-vis economics, or paperwork, however.

Accepted Answer

Reply

A final thank you. Thanks for the quality of your answers, and the speed at which you answered. And a special thanks for the referral article!

Answer

Thank you Beppo. Let me know any time you need help.

Related Tax Questions

Country/State/Province of question: USA: WA state

Already Tried:
???

Hello Beppo,

Are you self employed or do you work as a regular employee?