Thanks for your answer. Based on hours of research I don't think I can gift her the $6,000 to put into a roth IRA since she needs "income" to make a roth IRA contribution. I also think she is exempt from taxes on this income due to an exception . Just trying to support her retirement and it is so difficult to sorth through this tax mess !
1. If it is a gift then my Mother in law could not use that gift money to contribute to an IRA. Only taxable compensation can be used to contribute to an IRA.
https://ttlc.intuit.com/community/retirement/discussion/can-you-put-money-that-you-receive-as-a-gift...
2. If I give the $6,000 to my mother in law as income then it is not subject to income taxes / self employment taxes:
https://ttlc.intuit.com/community/tax-credits-deductions/discussion/live-in-granny-nanny/00/953813
