1098 misc

[daveeyes]

my son would have gotten a refund but he had a 1098 that no taxes were taken out of. If he were to invest that entire amount (5600.00) in an ira, would he go back to getting a refund?

[ColeenD3]

Unfortunately, not all of it. Part of the amount due is the 15.3% Social Security and Medicare taxes. That is still taxable, even with an IRA.