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Financial Planning / Tax Strategies


Subject:  Self employment tax Date:  6/22/2006  5:08 PM
Author:  Renegadecj Number:  87521 of 127753

My DW has been watching my brother's kids a few days a week lately, and it will end up being all summer. She is doing this so my brother's wife can go back to work. They pay her a little something (I'll stress little), but by the end of the year, I could see it being $1000-$1500). On the flip side, my DW drives the kids around to all their activities, and pays for lunches, pool fees, and some periodic fun things like the water park. We have no problem with the wasn't a "for profit deal" for us, but my brother would like to give us a 1099 for the income. No problem there either, but if he does, should my DW track all her expenses, so we can deduct all the mileage, fees, lunches, etc.? If not, we are really going negative on the deal, since the payment really only barely covers what we spend.

Any advice?
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