We are retired and don’t need to work to cover expenses, but wife did some babysitting for a while in 2015. Parents have since decided to deduct what they’ve paid her thus she has $2000 self employment income to pay taxes and SS tax. When Pub 590 says you can contribute all income up to a max do you need to account for the taxes and SS tax on the $2000 or can she contribute the full $2000 and use our other income to pay taxes? She is 66.

Thanks
Dave