Is there any way to make IRA contribution (any type) for a housewife who does not have any wage income for the whole year?
Some additional questions:
- Does investment income count? (e.g. interest, dividend)
- If the husband pays the wife, does the husband needs also pay SSN tax etc?
Thanks.
When filing MFJ, if the husband has wage income (or Schedule C income), IRA contributions may be made for the wife, subject to AGI limitations. The housewife herself does not need to have any direct income, in such an instance. Investment income (interest, dividends) does not create a qualification for IRAs. No need for the husband to pay the wife, if filing MFJ -- as his earned income qualifies the couple (however, if he did hire her for his self-employment business, then _Yes_, SS and Medicare taxes would be due
-- either via normal payroll deduction with employer paying half, or as "independent contractor" -- where the wife's SS & Medicare obligations would be paid via Schedule SE).
Bill
Okay then, I'll bite What on earth WOULD a husband pay his wife for?
ChEAr$, Harlan Lunsford, EA n LA
Services, Harlan :-)
(Receptionist? Housekeeper? Cook? Nurse? Companion? Bookkeeper? Assistant -- aka Vice President? :-)
Bill
Only logical reason I can think of is to get social security credits.
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