What can a babysitter deduct on his/her tax return?

Question

Hi All,

I am preparing the 1040 for my aunt and she received a 1099 from her employer. I understand she has to pay all the "other" tax but just wondering if she can deduct her mileage? If not, is there any other expense she can deduct to lower her direct misc income? Any comments or suggestions are greatly appreciated. Thank you for your time.

Best Regards,
Allen

Answer 1

no, she would not be allowed to deduct mileage since commuting expenses are not deductible. does she pay for her own health insurance? if so, this could be deducted on Form 1040, page 1.

she should consider contributing to a traditional IRA. she could get a deduction of up to $4,000 (assuming she has at least this much income). she has until the filing date of the tax return to contribute for 2006.

Answer 2

Commuting mileage is not generally deductible. If she drove the kids around or went to the store for their parents, that portion of the mileage would be deductible, if she very excellent records of mileage.

She would be able to deduct any out of pocket expenses that relate directly and only to the babysitting or self employment. Food she provides for the kids, fliers or business cards if she advertises herself, health insurance premiums for herself. If she paid for a First Aid/CPR class, that could be deductible since it makes her a better and more valuable babysitter.