We are only using standard deductions & filing short form. My spouse earned $690 providing after-school childcare. How do we account for this money on our tax return?
2007-02-25 07:19:41 · 5 answers · asked by exreservist 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
You can't file short form (Form 1040A) with self-employment income. That child-care income is self-employment income. You must file Form 1040.
Also file Schedule C or C-EZ to account for the income and business expenses. Any out-of-pockets costs are deductible as business expenses on Schedule C or C-EZ if they were related to the production of income. This could include diapers she bought, meals she provided, etc.
File Schedule SE if the net income from the business activity is $400 or more for the tax year. SE tax is levied at 15.3% of the net profit from the business activity.
2007-02-25 07:30:04 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
style 1099-MISC means which you're an "autonomous contractor" at the instant are not an "worker". For tax purposes, an "autonomous contractor" is self-employed, via fact which you at the instant are not "employed" with the aid of the enterprise for which you're working. in case you're "employed" with the aid of the enterprise, and you at the instant are not "self-employed", then the enterprise could deliver you style W-2, no longer style 1099-MISC. in case you're particular which you at the instant are not "self-employed", then you quite could document style SS-8. If the IRS has a similar opinion with you, then you quite won't could pay the "self-employment tax". even nonetheless, the enterprise gets in a impressive style of hardship for imparting you with a 1099-MISC, which became unlawful, and for no longer taxing your verify, which became additionally unlawful. in case you do no longer choose them to get in hardship, then flow alongside with the fiction which you're self-employed, while you evaluate it rather is the only way that they are able to flee with sending you a 1099 and not taxing your verify.
2016-11-25 22:44:28 · answer #2 · answered by ? 4 · 0⤊ 0⤋
You file a long form & a Schedule C (Profit & Loss from Business). It isn't hard, you will just have a lot of blank lines on the long 1040.
2007-02-25 07:27:26 · answer #3 · answered by Tom's Mom 4 · 0⤊ 3⤋
If your spouse earned that money and didn't pay that money as you mentioned then you include it in earned income on the first few lines of your 1040.
2007-02-25 07:37:22 · answer #4 · answered by TMAC 5 · 0⤊ 3⤋
should be a place for "income other" usually this type of claim goes in one place and out in anouther ie persoanl exemptions
2007-03-01 06:11:38 · answer #5 · answered by letsget_dangerous 4 · 0⤊ 1⤋