Ask a Business Lawyer. Get Business Law Questions Answered ASAP.
Thank you for the updated info.If a Social Security beneficiary is younger than full retirement age (66), $1 in benefits will be deducted for each $2 in earnings above the annual limit ($15,120 in 2013). Since you propose to pay $800 per month, that would be $9600 per year, which is less than the annual limit. Therefore, your mother would not lose any Social Security benefits under your proposed scenario.
You may want to consider purchasing some payroll software or hiring a payroll service to handle the various deductions and remittances to the government. Payroll mistakes can have huge negative legal consequences. The state and federal government assess heavy penalties for payroll errors. Hope this helps.
It is even worth if for me to go through the run around of paying her deductions. I agreed to pay for her taxes and I know that she does not want her SS affected but that she also still wants to contribute so that she can continue to build on her SS benefit.
I think I understand. The botXXXXX XXXXXne is that my mother won't lose of any of her SS income without being taxed and 800 dollars is not enough for her to really make a difference over the next 3 years for her to have to claim taxes
A gift is only a taxable if it's in exchange for something. You are potentially exchanging work for money. But, it doesn't have to be so. Your mom can enjoy helping you and you can enjoy helping her without any exchange between you. It's all in how you explain it, in the event that you are ever audited -- which isn't likely to happen.
But, if you are, then come back here, and we can talk about it further.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).