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4 Answers

Babysitting and taxes?

Asked by: pmitchem 1122 views YA Discussion

I was wondering if I needed to claim babysitting on my taxes. I babysit a few kids out of my home but im not licensed nor do I claim my money I get as income such as when my husband and I file for a loan or anything like that I put housewife. The people I babysit for havent asked for my ssn ever or to keep up/give them a reciept. I really cant afford to pay in or want to get audited because I have no idea about being audited. Any help/advice would be very helpful!

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4 Answers

  1. Quick Answers on Oct 10, 2012 Reply

    Yes, you are required to report the income. Whatever made you think you didn’t have to?

    Come January, your astute clients will give you a W-10 asking for your legal name, address and SSN. Even if you refuse to give it to them, they can still claim child care expeses on their tax return. They simply attach a letter explaining you refused to give it to them. That letter is a red flag to the IRS to figure out if you have reported the money or not.

    Since you have no license, you would report 100% of the income on schedule C, no expenses and pay both income and SE tax. By law you have to have a record book showing the income.

    Anything else is fraud.

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  2. acmeraven on Oct 10, 2012 Reply

    Go to IRS.GOV and download a Sch C & instructions and order or download a PUB 17 and do some reading. Protect yourself in a proactive manner.

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  3. tro on Oct 10, 2012 Reply

    this is income for you and needs to be reported on Sch C and possibly Sch SE
    this will be included with your joint 1040 with your husband
    you may not be able to afford paying taxes but in reality you cannot afford not to
    if the people are not planning to claim child care credit on their taxes, they probably won’t ask for your SSN but then again, they might decide to do so when they get ready to file their tax returns

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  4. Lee on Oct 10, 2012 Reply

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