I did my sister a favor and agreed to babysit her two children for 2 wks @ $150/wk. She kept extending it, so I ended up doing 4.5 weeks (23 days) for a total of $680. Now she wants to claim the money for the childcare credit, which means I have to claim it as income (I did have a regular job also). This was NEVER mentioned before or after I started. I would never have agreed to $150/wk, knowing I'd have to pay taxes on it. After gas and tolls, my actual income was $75/wk. My husband and I are only due back $477 this year, fed + state combined. After adding the $680 "income", it will take away about $140 of our refund! And when all is said and done, I will only have made about 90 CENTS an hr for the babysitting! My sister does not even care. Do I have any legal recourse for her changing our agreement? How/where do I file this "income" on my taxes? Can I get a deduction for the gas, etc? Should I just forget it & file a 1040, rather than paying a tax preparer, which costs us more money?
2007-02-13
21:44:23
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8 answers
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asked by
lovetoplayfantasyfootball
3
in
United States