Deducting 401K contributions -- can I in my case?

daniel178 · #1 (**permalink**) 04-06-2014, 01:47 AM

Hello all,

I am filing as individual, in NYC, and am confused about something regarding deductions.

My situation:
I am essentially a freelancer working in the film & television business. However, I am part of a union, and even though I work on various productions (employed by various production companies) throughout the year, I am paid via a payroll company (actually, 3 or 4 national payroll companies only) and I have taxes taken out of each paycheck, and receive W2's for the jobs I work on. Now, I do also receive a small number of 1099-MISC as a result of certain equipment I own and rent out, but this is a small amount (roughly $3000-$5000 per year total as a result of rentals, which is the 1099-MISC income). The overwhelming majority of what I make is from W2 income.

Additionally, I have a 401K that is set up by my union (IATSE), and I contribute to it, a little bit (say, 5%-10%) for each job I do.

Now, I am being asked if I am "self-employed," as that -- if I understand correctly -- will allow me to deduct those 401K contributions. As I am a payrolled "employee," who received W2's, I didn't consider myself "self-employed." Am I in the eyes of the IRS? Since I have just a handful of rental 1099-MISC's? Am I able to deduct these 401K contributions?

Any help is greatly appreciated

Wnhough · #2 (**permalink**) 04-06-2014, 07:31 PM

Quote:

Originally Posted by daniel178

Hello all,

I am filing as individual, in NYC, and am confused about something regarding deductions.

#1;My situation:
I am essentially a freelancer working in the film & television business. However, I am part of a union, and even though I work on various productions (employed by various production companies) throughout the year, I am paid via a payroll company (actually, 3 or 4 national payroll companies only) and I have taxes taken out of each paycheck, and receive W2's for the jobs I work on. Now, I do also receive a small number of 1099-MISC as a result of certain equipment I own and rent out, but this is a small amount (roughly $3000-$5000 per year total as a result of rentals, which is the 1099-MISC income). The overwhelming majority of what I make is from W2 income.

#2;Now, I am being asked if I am "self-employed," as that -- if I understand correctly -- will allow me to deduct those 401K contributions. As I am a payrolled "employee," who received W2's, I didn't consider myself "self-employed." Am I in the eyes of the IRS? Since I have just a handful of rental 1099-MISC's? Am I able to deduct these 401K contributions?

Any help is greatly appreciated

#1;as your rent property that is not real estate, such as vehicles, office equipment or machinery, you must report your 1099 rent income on IRS Sch C and need to pay SECA tax on Sch SE aslongas the amoun ton Sch SE 2/3 is $400 or exceeds $400.

Additionally, I have a 401K that is set up by my union (IATSE), and I contribute to it, a little bit (say, 5%-10%) for each job I do.

#2;You are both an EEfor your W2 and a self employer for your 1099;As you said, as an payrolled EE, who receives a W2, you can deduct your 401K contributions. 401k plans are special retirement plans that are sheltered from taxation by the IRS. The benefit of deducting contributions on a traditional 401k plan is that the contributions are not taxed. This means that the money that would ordinarily go towards paying taxes instead gets invested.