How to get "earned income" for Roth IRA

[Emperor]

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I'm filing as a poker pro for 2006, my accountant says that will give me earned income. If anyone can think of a better way I'd like to know.

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So you are going to pay the 15% self employment tax?

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Ummm doesn't the rebate offset the other 7.5% that you are paying?

"Self-employment tax deduction. You can deduct half of your SE tax in figuring your adjusted gross income. This deduction only affects your income tax. It does not affect either your net earnings from self-employment or your SE tax."

[pr0crast]

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also if your going to commit tax fraud with a consulting job for god sakes pay ur friend in cash.

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WTF does the government care? I am as a result paying extra tax this year that I otherwise would not have (on the money I am being "paid"), and there's no way they can prove I didn't do a consulting job. How is it tax fraud if I'm overpaying in taxes?

[curtains]

The only real difference between investing yourself in index funds/bonds etc and a Roth IRA are the tax benefits correct? That and your money is less flexible in the IRA?

[pr0crast]

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The only real difference between investing yourself in index funds/bonds etc and a Roth IRA are the tax benefits correct? That and your money is less flexible in the IRA?

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Money in Roth IRAs are taxed before the money is put in the IRA and then NEVER again. So any gains you make in your IRA account on whatever you invest in are never touched by the government again. Only downside is that you can't withdraw profits until you are 59 1/2 without taking some kind of penalty. You can however withdraw your initial investment, up to $10k for your first house down payment, or some other amount for university tuition.