if I babysit how much I have to collect in charges before I have to file it with my taxes?
2007-02-16 00:33:53 · 6 answers · asked by Terri L 2 in Business & Finance ➔ Taxes ➔ United States
I am doing it daily
2007-02-16 00:39:11 · update #1
i don't have a proper answer, so perhaps i should not have answered.my answer though is, how they gonna know if you don't report it.
2007-02-16 00:38:56 · answer #1 · answered by glass. 5 · 0⤊ 3⤋
Technically if you made more than 400 (I think--it's somewhere from 300-600) in self-employment money you have to file taxes on it. You'd have to pay self-employment taxes and possibly income tax on the money. You would get to file deductions but I'm not sure if you have many or if you kept the receipts. I'm not sure but if you babysat in your home maybe you can deduct part of your rent/mortgage as a business expense? That can be tricky though.
-----
Okay, when you file self-employment taxes use the 1040 form, you'd also need to file a schedule C. Even if you use Turbotax or another tax program, please Get Someone To Help You for free possibly. It's not hard except the first time. If you pay a pro it'll be pricey. You would put the income in under as 1099 Miscellaneous income--not as W-2 wages.
That being said the person paying should've sent you a 1099 form--I seriously doubt they will and may not appreciate your claiming the income on taxes--but then they shouldn't pay you so little! They should be paying you a lot more.
If no one else can claim you as a dependent, and this is your only/main source of income you will qualify for the EIC. It won't be a lot--maybe a couple hundred. If you have a child it might be closer to 1000-2000 refunded back to you so if you do end up filing, please at least get this money for the work that you did. You have to request the amount--it's not automatic.
2007-02-16 08:49:18 · answer #2 · answered by Emma S 2 · 0⤊ 0⤋
If you have more than $400 per year in Self-Employment income, you MUST file a Federal return. SE income is subject to 15.3% combined Social Security and Medicare tax on the net profit from the business activity. If your income exceeds $8,450 (single filer) you will have an income tax liability as well.
Since you are not subject to withholding on this income, you are required to make quarterly estimated tax payments to the IRS using Form 1040ES. Failure to make quarterly estimated payments may lead to penalties and interest at tax time for underpayment of estimated taxes.
2007-02-16 09:14:04 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
You are legally required to report ALL income - whether you receive it in the form of a pay check from your employer or in cash for services rendered. The amount of earnings only matters with respect to if you owe tax on the income and how much tax. In general, you have to earn more than $8,450 if single or $16,900 if married before you would owe tax.
But, just because you may not owe taxes, that doesn't mean you are not required to file a tax return and report all of your income. Many people do not report such income because there are no records, W2's etc. That is still "cheating" on your taxes and is illegal. It's your call as to how you want to handle it.
2007-02-16 08:52:43 · answer #4 · answered by Xeod 5 · 1⤊ 1⤋
If you make more than $6,500.00 you have to pay taxes. Look on the website for the IRS and look at 401K EZ There should be a lowest amount to claim taxes. But the government really willl not care if you do not file? For single?
2007-02-16 08:56:42 · answer #5 · answered by ALunaticFriend 5 · 0⤊ 2⤋
I don't think most people claim that on their taxes unless they are babysitting daily for like 40 hours a week or if they are running a home day care.
2007-02-16 08:37:30 · answer #6 · answered by Bailey 5 · 0⤊ 3⤋