Its not like I make alot of money babysitting for in-laws. My husband earns a living. I just babysit for cash to buy our food. He earns enough to pay the bills, but not much left after that. Now if I have to pay taxes on the little I make from babysitting----------------well I guess I won't be buying groceries.
2006-09-22 02:05:28 · 16 answers · asked by cheerios 1 in Business & Finance ➔ Taxes ➔ United States
Legally, yes you have to report the income if it is over $600 per year. Doesn't mean that every week you have to send the IRS money. You just have to report the income at the end of the year. Depending on your tax bracket, deductions, etc... you may or may not owe taxes on the extra income but you do have to report it.
2006-09-22 02:09:11 · answer #1 · answered by troythom 4 · 0⤊ 0⤋
Technically speaking, any income earned is taxable. I don't know how much you're talking about here, but most people tend not to claim just a few hundred dollars in cash jobs like yours. If your babysitting clients aren't deducting your fees as a child care expense, then chances are that the IRS won't be aware of the arrangement since there's no "paper trail".
As a cpa, though, I'm obliged to tell you that all earned income should appear on your tax return, whether or not you've received any tax documentation regarding that income.
2006-09-22 02:10:23 · answer #2 · answered by SuzeY 5 · 1⤊ 0⤋
I don't know where the two answerers above came up with the idea that you don't have to file taxes unless it is over $7000 or over $10000.
In the US, any amount you make is taxable.
If they are paying you cash under the table, that is the risk you are taking...people do it all the time.
But if they are taking the child-care deduction on the money they pay you, you better be filing.
Haven't you heard stories of people who were running for a political office and got in trouble because the government found out they weren't giving their household employees (babysitters, maids) 1099's?
2006-09-22 04:01:02 · answer #3 · answered by T H 4 · 1⤊ 1⤋
Property will not be generated withou the human labour, may bephysical or intellectual. Goods and services are the result of endless human activities only. The machiens are only tools of human beings say prehistoric, historic or present generations. Hence the condition of machines earn money to pay everyone's bills doesn't arise. The condition may happen only on doom's day where no body will be there requiring anything.
2016-03-27 02:12:32 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Actually it wouldn't be a bad idea to file a Sch C with your 1040 for 2006. With all legitimate expenses you could very well have a loss. Therefore paying even less in taxes. These expenses could include but not limited to telephone, food for children, part of your utilities, and any other expenses you incure in your babysitting.
2006-09-23 12:07:27 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Assuming your parents can claim you as a dependent, the instructions for the 1040 state you have to file if you meet any of the following conditions: Your unearned income was over $800. Your earned income was over $5000.
The short reason is, if your income is less than that, your taxable income will be zero.
2006-09-22 10:57:48 · answer #6 · answered by STEVEN F 7 · 0⤊ 0⤋
Technically yes, realisitclly no. Unless the person you're babysitting for is reporting the money they give you to the IRS, there's no way the IRS would even know about it. Thus there's nothing to file.
2006-09-22 06:23:45 · answer #7 · answered by othellonuevo 2 · 1⤊ 0⤋
I really like the respones when people do not want to pay taxes. As a CPA i always tell people, Richard Hatch is looking for a roommate.
All income is taxable, unless the tax code exempts it.
There is no difference between you working for Sears and your in-laws, income received from both of them is taxable. The downside is that if you get hurt at Sears they pay workers comp and unemployment, your inlaws do not.
You get a lower amount from your inlaws because you do not declare it as income and they cannot deduct it. That is the choice you have made.
2006-09-22 03:53:10 · answer #8 · answered by dillon Y 3 · 1⤊ 1⤋
If your in-laws are taking a Child Care deduction on their 1040, you may have to report your income. It just doesn't make any sense for them to do that since you are family. Find out what they are doing and seek the help of a professional tax expert. It may not cost anything for that kind of advice.
2006-09-22 02:10:23 · answer #9 · answered by eeaglenest 3 · 0⤊ 0⤋
Technically yes..logically no..unless you give the person who pays you your social security number there is no way the IRS could ever find out
2006-09-22 02:07:21 · answer #10 · answered by dwh12345 5 · 1⤊ 0⤋