Explore the 1,000’s of tax questions answered by professionals.

Back to Reporting Income


Related User


If my husband is self-employed, can he pay his spouse, me, $4,000 a year and not have that amount treated as taxable income to the wife?


The BIDaWIZ Team's Answer:

Yes: provided that he does not deduct the payment, as a business

expense. However, a better alternative is to deduct the compensation,

as a business expense, and report the $4K, as salary to the spouse, and

then have the spouse deposit the $4K in her own IRA account; thus, deferring

tax, on the $4K, while still receiving a $4K business expense deduction.

The BIDaWIZ Team



  • Currently 4.6190/5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5
1547 Ans.