HI does anybody know?

Question

if I babysit how much I have to collect in charges before I have to file it with my taxes?I am doing it daily 40 hours a week charging 65.00 a week

Answer 1

It will depend on if your services are being claimed by the person you babysit for. They will need your social security number and name to be able to take the deduction for child care.

If they do not claim this expense on their taxes, then there is no one to report those wages to the IRS.

Check with them and then make your decision. You may want to check with a local tax company to make sure you have everything correct.

Answer 2

You have to file if your self-employment income for the year is more than $400. That would be a little over 6 weeks at $65 per week. If you have other income and are filing anyway, or if you are filing a joint return, you are required to report this income even if you don't make $400, you just don't have to pay self-employment tax on it if it's below $400.

Whether the person you're babysitting for claims the child care credit or not, you are legally required to report this as income.

Answer 3

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.