Wife EAD/I-9/SSN/Tax question

A

arnet

Registered Users (C)
wife is in H4 and planning to start work as a part time using EAD. here are my questions:

1. since it is a part-time job (1 or 2 days per wk), she might work like independent contractor 1099 or w-2 (NO benefits, it is like a HOURLY JOB). so confusion is where to submit I-9 form if you DONT HAVE employer.

2. she has SSN (in H4 visa she got it years ago) but says NOT AUTHORIZED TO WORK, whether she has to contact SSA with EAD details to change it to AUTHORIZED TO WORK inorder to start working? whether she need to update SSN to work?

3. regd Tax, she will be either in 1099 or W-2 how can she report IRS about wages and taxes (including estimated taxes, deducting taxes like ss tax, federal,state tax) and how to get details abt it?

Thanks in advance.
 
1. There's no need for an I-9 form if you don't have an employer. If she's a W2 employee she will have an employer and they will ask her to fill out an I-9. If she's 1099, she shouldn't have to.

2. The SSN card shouldn't matter. It will still say not authorized for work even with the EAD, because the EAD is the proof that she is allowed to work. As long as she has an SSN and the EAD she should be fine. Once she gets her GC she can get a new SSN card without the work restriction.

3. If she's W2 her employer will do withholding of taxes. If she's 1099 she may have to do estimated taxes depending on how you file. The IRS has details about that. You'll pay taxes like any US citizen, it doesn't matter that she's on EAD.

If you file your taxes jointly (which is advantageous most of the time) she may not even have to do estimated taxes, since you may be able to take advantage of the "safe harbor" provisions that state that you don't have to pay any penalties if your current year's withholdings are within a certain percentage of last year's tax liability. Please double check this, because I'm not sure if this also applies to FICA (social security/medicare) taxes. I'm in a similar situation, but I'm doing 1099 work in addition to a W2 job and my W2 job puts me over the threshold for where I can stop paying the social security taxes.
 
gc_row said:
3. If she's W2 her employer will do withholding of taxes. If she's 1099 she may have to do estimated taxes depending on how you file. The IRS has details about that. You'll pay taxes like any US citizen, it doesn't matter that she's on EAD.
Click to expand...

Since they're married, the easiest thing to do is reduce the number of exemptions amet is taking on his W-4 so that more taxes are withheld. If he's in the 25% tax bracket, then we can safely assume that around 43-44% of the spouse's gross income needs to be set aside for taxes (25% federal + 6% state + 13% FICA).
 
how to pay tax if independent contractor

how to pay ssn tax if independent contractor? how to classify and pay taxes i.e. for ssn this much tax i want to pay, for federal this much, for state this much, medicare this much etc.? in irs website it has only option to pay total tax. but how it will go for each section like medicare, ssn, etc.


thanks for your help
 
arnet said:
how to pay ssn tax if independent contractor? how to classify and pay taxes i.e. for ssn this much tax i want to pay, for federal this much, for state this much, medicare this much etc.? in irs website it has only option to pay total tax. but how it will go for each section like medicare, ssn, etc.


thanks for your help
Click to expand...

As this is last quarter you can do with next year tax return. If you use any of the standard Tax software it is calculated automatically based on your 1099Misc you get at the end of the year.

For Next year you may have file estimated tax quarterly
 
You must log in or register to reply here.
Top