Can we establish an individual retirement account for her consultant business and deduct the contribution?
If you and your wife have adjusted gross income in excess of $75,000, she is not eligible for a deductible IRA because she is covered elsewhere by a qualified plan. Below that income level, she is. However, you can establish a SEP IRA by the due date of your return and put away 20% of her self-employment income, up to $41,000. Q: I work as a promotional specialist and am paid by a company in Florida. I received a 1099-MISC. I assume I’m a subcontractor. Can I deduct personal appearance expenses such as hair, nails, tanning, etc.? A: You are a subcontractor and should report your income on Schedule C. Your business expenses also go on Schedule C. Personal appearance expenses probably aren’t deductible. The only exception would be if you were required by the company to tan a certain number of hours, and it’s specified in your contract. IRS Publications 334 and 583 provide some guidance about deductible expenses. Q: I understand there are two ways to calculate the expense on the business
