My wife was approached by a former colleague who is now working for a foreign company. He would like her to do administrative work for him as independent consultant. She would be paid via electronic transfers from a foreign bank account.
My wife and I are both residents of Delaware. I am living off my pension and 401K. My wife is seeking employment in DE so this would likely not be her only source of income.
My question is whether and/or how to report this income on our Federal and/or State Tax returns. I don’t believe she will be receiving a 1099 from this company.
If this income is required to be reported, should she report it on a Schedule C and submit estimated quarterly Federal and State taxes on this income?
Also, should she also make Social Security and Medicare payments on this income and at what rate?
