2007-02-05 06:41:11 · 2 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Actually you must add the amount to your other income and, if you are required to file, you must do so. If you earned more than $433 net you will have to file in any case because you will owe self-employment tax.
The $600 limit is commonly misunderstood. That is the threshold at which businesses must issue a 1099 to self-employed individuals and partnerships who work for them. Individuals, as a rule, do not have to issue 1099's so you will not get forms from your babysitting clients. However you must still declare the income.
Depending on your situation, it may be beneficial to report the income as you may get more EIC by doing so - income from babysitting is earned income.
2007-02-05 06:51:03 · answer #1 · answered by skip 6 · 0⤊ 0⤋
Yes - and actually - If you made more than $600 - you are required to. Confirm with the IRS in regards to your specific situation.
2007-02-05 14:43:46 · answer #2 · answered by lifesajoy 5 · 0⤊ 0⤋