Message Font: Serif | Sans-Serif
No. of Recommendations: 0

Well, first of all, I am a little concerned about all these expenses.

We live in NYC, and have no idea how much work DD will actually get. At worst, DW will be driving in to the city (up to $13 in tolls each time + $20-$50 in parking) a bunch of times before landing a gig that would be limited (justifiably so) to 2 hours of work. If she lands 1 out of 10, that leaves very little profit.

Now with the tax implications, I am very concerned that we will spend more than she earns.

A couple of follow up questions (by the way... THANK YOU for terrific info!):

1) if DD does get hired, does that mean she pays for tolls and parking? Then she could deduct that?
2) The only reason we are doing this is to try to fund her 529. I have a savings account that I control, but she is beneficiary. From this account, I was planning on moving the funds to my account to deposit into her 529 (and thus deduct on my NY State tax return. Based on this info, sounds like that would not be legal? I suppose I could leave the funds in her savings account then fund her 529 from there and deduct from her state tax return? I assume that would be a lesser deduction than if it were off DW and my return....

Thanks again!


PS-- we draw the line at Toddlers and Tiara's :-)
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.