The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Uncharted waters||Date: 6/13/2012 5:57 PM|
|Author: TMFPMarti||Number: 116262 of 121219|
Now with the tax implications, I am very concerned that we will spend more than she earns.
The price of fame. See La Boheme and keep her out of drafts.
Since even as a dependent she'll get a standard deduction up to the Single limit or her earned income plus change, the employee business expenses will wind up with no tax benefit, just like they do for most employees. Bitter lesson learned too early in her life, so write it down for her so she can reflect on it later. It's not quite bronzed booties, but....
I'm no expert on 529's either, but I strongly endorse Peter's idea of funding a Roth IRA, which should be a legal use of her earnings. Max investments while she's young coupled with raising her a Fool should leave her situated to support you in the style you'd like to be accustomed to in your dotage.
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