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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121591  
Subject: Re: Roth IRA - 1099 and Fellowship Income Date: 2/8/2009 10:46 AM
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Her income of $9000 plus some sales of $2500 will count after expenses and self-employment tax right?

What if I buy $8000 worth of her work? Would that count as earned income for her? Since we are married filing jointly then the income would count for both of us right?


I'm lost again. I thought we were talking about 2008. If you buy--and I don't mean "buy"--$8,000 of her work that will be 2009 income. (More on that purchase below.)

Last question, if she deducts legitimate expenses from the $8000 then it won't count towards the earned income threshold and all my thinking is moot right?

I assume she's a cash basis taxpayer, so she deducts her expenses in the year she incurs them and reports her receipts in the year she receives them.

IIRC you're 29. As good a time in life as any to remind yourself that one way of defining morality is doing the right thing when it's inconvenient to do so. Doing so will serve you well throughout life.

Phil
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