Working With Your Spouse

[Go play!]

Do any of you work with your husband or wife? I have been doing childcare for a year and a half with a home license but we are considering getting a group license and working together. How do taxes work? Would I have to "hire" him and take out taxes. Just getting a feel for how the logistics work.

[Chellieleanne]

It depends on your state. I know I can run my business with my husband but when I become licensed (legally unlicensed currently) I have to treat him like an employee and he has to be tested for TB and take classes and all that. I can't do what I do now and run an errand or something and leave him with the kids. Tax wise though I think there are exemptions for husband/wife businesses but It depends on how you run it. That is federal level though.

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Husband-and-Wife-Business

Edit: so if you and your husband make equal decisions in the business then you don't have to take out separate taxes like an employee and you both get credit for working but it doesn't increase the amount of income you brought in. If you make the decisions and he just follows then he is an employee and you have to take out taxes and such from his pay.

[Blackcat31]

Do any of you work with your husband or wife? I have been doing childcare for a year and a half with a home license but we are considering getting a group license and working together. How do taxes work? Would I have to "hire" him and take out taxes. Just getting a feel for how the logistics work.

Welcome to the forum!

[Go play!]

Thanks!