Elizabeth Ayoola

You don't have to pay any taxes come tax time.

Yay.

But even if it was a traditional IRA, you'd only be taxed if you made withdrawals from that account.

Since the listener is employed and doing contract work, I want them to keep an eye on the Roth phase-out limits.

Now, for 2026, if you are single and your modified adjusted gross income is under $153,000, then you can contribute the full amount.

But for the most part, you don't need to worry about paying taxes on investments in the stock market come tax time unless you sell assets at some point during the year.

That yield is considered ordinary income and it's taxed at your marginal tax rate.

Sorry, it's not free money.

Well, not exactly.

You report it as regular income when you do your tax return.

The high-yield savings account provider will usually send form 1099-INT.

I get that every year.

If you've earned above $10, the form will let you know your interest income for the tax year.

So you don't have to do any math around that.

I agree.

I agree.

Something is better than nothing.

Listener, we hope that we answered your question and we hope the rest of you listeners to learn something about filing taxes as a self-employed person.

We want you to join us next time to hear about paying for senior care.

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