Small business owner
My husband owns his own plumbing business. He has no employees. I (wife) answer the phone, schedule, banking and billing. Would it be beneficial for me to start getting paid for the work I do? We pay over $20,000 in taxes per year. And for some reason have very little in out checking account.
What is the most beneficial way to capitalize our earnings?
We have two kids (both in Highschool) one college bound one undecided.
Terry Says
If he would pay you even $6,000 you could deduct and invest that into your own IRA. That would be a great idea.
But he should discuss with his accountant. He would either have to pay FICA for you — or you could be an “independent contractor.” It’s important to get that right. But if you haven’t worked, you probably can’t build up much of a social security payout, and will have to rely on his. (You’ll then get his benefit if he dies before you.)
With your earnings as a deduction to him, you might qualify for more financial aid. But if you have no savings and low income, please look at nearby community colleges for your kids — and don’t let them, or you, build up a lot of debt.
