I am going to start babysitting. I usually got paid under the table and never had any employers claim it on their taxes. i am getting ready to start a new job and the family wants to claim it on their taxes. I don't understand what that means. If my money will be taxed at the time given, or if I have to file taxes in 2008 for the 2007 year and owe all that money back? THis is my first year going to have to file taxes for the 2007 year. SO i'm new at this so please help. She doesnt understand doing this either- she has a new son and never had childcare for him before. How do most babysitters do this with thier family? And also If i have to file self employed next year- will I owe alot of money back or what?
2007-02-25 06:47:16 · 5 answers · asked by whatup 2 in Business & Finance ➔ Careers & Employment
If you are a mere child yourself, ignore the following advice and move onto another customer who continues to pay you "under the table" so to speak. All the hassle of filling out forms and such will not be worth it for the occasional babysitter. If however, you are a full-time nanny or child care service provider, then here is the story. If the people for whom you are working this year (2007) begin deducting child care expense from their taxes and report you as their babysitter (and the salary they paid you), then you should be filling out appropriate forms (1099) and filing taxes beginning in 2008 (for the 2007 year). In other words, this year everyone who files taxes will file for 2006 because of course, 2007 is still underway. Thus next year in 2008, we (and you) will file taxes for this year, 2007, and so on and so forth. You need to be sure to keep a running total of what you are earning (don't rely on your employer, the family for whom you are babysitting, to do it for you), and be sure to report this to the government. If no taxes are taken out of your salary by the family for whom you work, then of course you will owe those taxes the following year (in this case in 2008), depending of course, on how much you make. Really, the rules and laws keep changing (especially if you are self-employed), so it might be best to check in with a qualified tax preparer, or someone who really knows their stuff, a CPA, etc.
2007-02-25 06:57:17 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It's no big deal. Just keep track of how much you make each week and from whom. Then set aside about 10% in a safe place, maybe a savings account. Then when you file taxes in 2008 for 2007 you will have saved already what you might owe. Depending on your total income, it might not be taxed at all. I would save it just in case. Then if you don't owe taxes you'll have a nice bonus for all your hard work!
2007-02-25 15:02:05 · answer #2 · answered by Lori 2 · 0⤊ 1⤋
You'll show the income and any associated expenses on a schedule C or C-EZ, and use a schedule SE to calculate self-employment tax. The numbers from the bottom of each of the schedules will transfer to your 1040.
2007-02-25 16:40:54 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
There is a big difference between a child care service and a baby sitter... I'm assuming you're a youngster yourself. In all honesty I would tell them that you will be unable to provide for their needs and move on to another customer. It is going to be more of a hassle than it is worth.
2007-02-25 14:51:55 · answer #4 · answered by Ecofreako 3 · 0⤊ 0⤋
do it yourself. nj.gov
2007-02-25 14:49:28 · answer #5 · answered by micro52000 3 · 0⤊ 0⤋