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what is the best way to finance their tuition fees? Parent Plus Loan? Home Equity Line of Credit? Home Equity Loan?
VA 529 combined savings of $62K
I've actually been checking around for teen job opportunities...she could get a job at some of the stores at Tysons Mall, but to be honest she makes more money dog sitting and babysitting (and doesn't have to pay taxes on it!)
W2 versus 1099 income
You also should be aware of the different treatment of income reported on Forms W2 and 1099. If your daughter is considered an employee, her income will be reported on a W2 and subject to withholding. However, some employers prefer to hire part-time workers as contractors. On the plus side, nothing will be withheld. On the minus side, contractors who have net earnings (income minus expenses) of more than $400 will owe self-employment taxes, which basically cover Social Security and Medicare taxes. In this case, a contractor has to file a tax return even if no income taxes are owed. (IRS Publication 501 provides guidance).