Message Font: Serif | Sans-Serif
No. of Recommendations: 0
My wife has a new job grooming dogs.

Congrats. Sounds like a job on the "cutting" edge.

She goes to the owner's shop, does the work there and receives a paycheck. However, they do not withold taxes.<i/>

Do they not withhold ANY taxes or just not federal withholding? Do they withhold state taxes?

Is she considered self-employed by the IRS?<i/>

If they do not withhold ANY taxes, then yes she is considered self employed and will have to file Schedule C to report her income and expenses. She should keep track of any expenses she has related to this "business".

Can I simply increase my deductions on my job's paycheck enough to cover her taxes or do we have to pay separate Social Security payments for her as well as Federal taxes? <i/>

Yes, increasing your deductions at work is valid and even a good way to cover the taxes if they are not large. Otherwise you can pay quarterly estimated taxes. Do keep in mind, you will pay Federal Income taxes, Social Security and Medicare taxes. The Social Security and Medicare taxes are about 13%. Your Federal taxes will be based on your taxable income. For most people it is 15% or 28%. So make sure you are having enough withheld.

If you have any other questions you can e-mail me or post it here.

Good luck

Zeb and Hildegarde

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.
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.