Stay at home mom helping commission earning spouse

[Clara85]

What is the name of your state (only U.S. law)? IOWA.

I am currently a stay at home mom. My husband works from home as an outside sales agent. While everyone else who does his job works as an independent contractor, he is an EMPLOYEE (he is a highly valued salesman so they give him benefits and employee status). Now because I am also home, I have learned about the business and wish to help him out, making calls etc. My husband asked his boss (the managing partner of the company) to set me up as an independent contractor. His boss said he didn't want to mess with setting me up, BUT I am free to work on accounts and the commissions would just be included on my husbands check.

This arrangement is perfectly fine with me, but is it legal? We are married and file jointly. If it isn't, is it possible for my husband (an employee) to have his own contract with me working for him as an independent contractor and pay me my portion of the comission? Or is there just no way to make this work without the company hiring me as an independent contractor.

If this counts for anything: 1. I will only be helping my husband on a very part time basis making likely less than $1k for the year. 2. If I end up making any substantial amount I will likely get my own contract with the company, I think they just don't want to mess with paperwork for me right now, because they doubt I'll stick with it or make any money (they know I've been at home for years)

Thanks for your help!

 

[LdiJ]

What is the name of your state (only U.S. law)? IOWA.

I am currently a stay at home mom. My husband works from home as an outside sales agent. While everyone else who does his job works as an independent contractor, he is an EMPLOYEE (he is a highly valued salesman so they give him benefits and employee status). Now because I am also home, I have learned about the business and wish to help him out, making calls etc. My husband asked his boss (the managing partner of the company) to set me up as an independent contractor. His boss said he didn't want to mess with setting me up, BUT I am free to work on accounts and the commissions would just be included on my husbands check.

This arrangement is perfectly fine with me, but is it legal? We are married and file jointly. If it isn't, is it possible for my husband (an employee) to have his own contract with me working for him as an independent contractor and pay me my portion of the comission? Or is there just no way to make this work without the company hiring me as an independent contractor.

If this counts for anything: 1. I will only be helping my husband on a very part time basis making likely less than $1k for the year. 2. If I end up making any substantial amount I will likely get my own contract with the company, I think they just don't want to mess with paperwork for me right now, because they doubt I'll stick with it or make any money (they know I've been at home for years)

Thanks for your help!

Your husband should probably issue you a 1099. However that would cause complications because the income would be included in his W2 and therefore the IRS would look to tax it twice. It could be deducted as an employee business expense on form 2106 and Schedule A, but that would only be helpful if you itemize and if you have sufficient expenses in that category to top 2% of your AGI.

If you earn less than 600.00 its less complicated that if you earn more. A 1099 does not have to be issued for less than 600.00.

 

[Clara85]

Ok, thank you. That was along the lines of what I was thinking we would have to do, I just wasn't sure if my husband, as an employee, not a business owner, could issue a 1099.

 

[LdiJ]

Ok, thank you. That was along the lines of what I was thinking we would have to do, I just wasn't sure if my husband, as an employee, not a business owner, could issue a 1099.

If he contracts with someone to do something, he can issue a 1099.