Splitting SE Tax for Two Sources of SE Income
by Mark Kaplan
(New York City)
In 2009, my wife, a Russian national with Lawful Permanent Residency, did one contract job for a US-based company, earning $4500 gross, on a 1099. From September 1st until December 31st -- she worked for the United Nations . The UN paid her $17,274.00 in 2009 for her services, and gave her a statement with that figure. So that's her gross, total income for tax purposes for 2009.
My wife owes Self-Employment tax on the 1099 income of $4500 from her one contract job for the year, but is excluded from paying SE from her UN employment, by US tax code, as the IRS does not collect SE from a Lawful Permanent Resident working for an international organization, such as the UN.
Can SE be divided in this case? My wife has a number of deductions for various expenses, due to the fact that she is exclusively self-employed, as well as for our dependent daughter.
Please advise at your convenience.
Thank you.
Mark Kaplan
Superannuation For The Self Employed
by Manuel
(Sydney, Australia)
Hi
I am partly self employed and also working Part time. I earn about $80K in part time employment and get about $30K in self employment. I want to make contributions to my super from my self employment income. Is this a Tax effective strategy. I am assuming that my contributions to super are tax deductible.
Manuel
