Q: I made money in stock market this year. Can I file my taxes as self employed and put money in a self employed Keogh plan
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A:
Making money in the stock market alone typically does not qualify you as self-employed for tax purposes. The IRS considers trading activity as investment income unless you meet specific criteria to be classified as a trader in securities, which requires frequent, regular, and continuous trading as your primary business.
For most individual investors, stock market gains are reported as capital gains on Schedule D of your tax return, not as self-employment income. This means you would not be eligible to establish a Keogh plan based solely on investment income, as these retirement plans are designed for self-employed individuals with earned income from their business activities.
If you want to maximize your retirement savings, you might consider other options like contributing to an IRA or, if you have other self-employment income from an actual business, exploring retirement plans available to self-employed individuals. You should consult with a tax professional who can review your specific situation and help determine the most appropriate retirement savings strategy based on your income sources.
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