Hi there! I'm working up a client's return. She made about 60K in income. After plugging in her numbers, she owes 8k. I've played around with lines on schedules C and A, deducted mileage, insurance, advertising, everything. She still owes about 8K.
What are some things she can do to reduce her tax burden this year?
Is there something I might be missing?
Does she have a retirement plan? She can still set up a SEP for 2007.
It's not clear whether your question about "this year" refers to 2007 or 2008. Obviously there are a lot more options for 2008.
Bob Sandler
Did she make her full allowable retirement contributions? She can still reduce 2007 AGI with a SEP contribution even if no plan was previously set up.
The $8,000 must be balance due since the self-employment tax alone on $60,000 would be more than that. Sounds like she also needs some estimated tax education.
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