If your spouse materially participates in your self-employment job, you can (and should) officially recognize that. There are 3 options.
1. Pay her as a W-2 employee of the business.
2. Hire her as a 1099-NEC independent subcontractor, she would file her own schedule C to report her subcontractor income, and you would deduct the subcontractor payment as a business expense.
3. Treat her as a partner or as a qualified joint venture. This can be complicated, especially if you live in a community property state, or if you form an LLC. I won't go into details now, but please ask if you need to.
Once your wife has her own earned income, she can contribute to an IRA (if she is an employee) or an SEPIRA (if she is your subcontractor). There may be other options, but first she must work for the business in some official way that shows up on a tax return.
