Hello all! I am currently in a tuition based (brutal I know) dental residency. Unlike medical residencies, many dental residencies are not paid and actually require you to pay tuition. However, I am moonlighting this year and expect to make between $50-80k (wide estimates based on asking the older residents).
To be honest, I have tried understanding the intricacies of the taxes and what I am able to deduct but it just does not quite click for me. I am open to any advice or recommendations on how to best handle my situation.
My questions is whether I should use a Roth or Traditional IRA for my savings (or another avenue). In my moonlighting, I am working as an independent contractor and was told my tax rate will be extremely high because I will have to pay 100% of the FICA taxes. I was wondering if because of that it would make more sense to use a traditional IRA.
I also know it should not be in this thread but if anyone has advice on how to reduce my taxable income for this upcoming year I am all ears. Saving 40% of my paycheck to go towards taxes is pretty frustrating. I am open to any tips that you may have and honestly am not aware if I am missing out on an avenue to save some money.
Thank you for your help!
To be honest, I have tried understanding the intricacies of the taxes and what I am able to deduct but it just does not quite click for me. I am open to any advice or recommendations on how to best handle my situation.
My questions is whether I should use a Roth or Traditional IRA for my savings (or another avenue). In my moonlighting, I am working as an independent contractor and was told my tax rate will be extremely high because I will have to pay 100% of the FICA taxes. I was wondering if because of that it would make more sense to use a traditional IRA.
I also know it should not be in this thread but if anyone has advice on how to reduce my taxable income for this upcoming year I am all ears. Saving 40% of my paycheck to go towards taxes is pretty frustrating. I am open to any tips that you may have and honestly am not aware if I am missing out on an avenue to save some money.
Thank you for your help!
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