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Subject:  Re: Self employment tax Date:  6/23/2006  4:09 PM
Author:  Renegadecj Number:  87542 of 127513

Question: When they're not out having fun, where does the watching go on--your house or your brother's? This matters because IMO it weighs heavily in determining whether your wife is self-employed or a domestic employee in your brother's home.

The watching goes on at my brother's house.

This is inappropriate no matter what the answer to my question is. If your brother has a household employee, he reports those wages on a W-2 and Schedule H of the 1040. If your wife is self-employed, your brother need only show her SSN and other identifying information on Form 2441, where he claims the childcare credit. 1099's are for business expenses.

I'm sure that is what he plans to do. I think he must have just gotten the two forms flipped.

Regardless of whether she's self-employed or an employee, your wife needs to keep a record of her expenses.

Ok. I'll have her keep reciepts, and track mileage. She doesn't want the headache, since it really isn't a job, but I don't want to pay senseless taxes either!

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