Babysitting income?

Question

I am filing my return as married filling jointly,and gonna have standard deduction, I earned $395 by babysitting my neighbour's child, my wife also earned $397 by babysitting my another neighbours child. since we are married filling jointly and the total from babysitting income from both of us is $ 792,
Do we have to file schedule C or schedule C-EZ or schedule SE?

Also if we do not have to file schedule C or schedule C-EZ or schedule SE then where can we report $792 babysitting income on Form 1040?
any help appreciated.

Answer 1

You need to file Schedule C or C-EZ AND Schedule SE. Since she had more than $400 in self employment income the Schedule SE is mandatory. And since it's income from a business activity, Schedule C or C-EZ is mandatory.

Answer 2

I would offer a different approach. The income is clearly taxable as ordinary income - Schedule C or 1040, Line 21 other income would suffice. There is some difference with the other respondants concerning the SE tax. Self employment tax is imposed on the earner of the income. In this case, each earner had less than 400 of SE income, therefore no SE tax is required. Therefore, either Line 21 or Schedule C would be appropriate, however so SE tax would be imposed.

See IRC 1402(b)(2).


*****Any tax advice included in this written or electronic communication was not intended or written to be used, and it cannot be used by the taxpayer, for the purpose of avoiding any penalties that may be imposed on the taxpayer by any governmental taxing authority or agency*****

Answer 3

You need to file the c ez or the c here. You social security income needs to be collected here.

To limit the impact of this additional tax amount make sure to deduct items that you spent money while taking care of the child . Happy meals a toy anything you bought specifiably for the babysitting can be used.

Also remind your neighbor you are claiming this income so she can go ahead and file the child dependent care credit .
You need to share you SS #s with your neighbor

Answer 4

well, technically and legally you are required to report the income. but, come one, who hasnt shaved the edge a little bit....
if the payer of the babysitting fee doesnt want their tax deduction for it, then I PERSONALLY would not report that little bit of income. they'd only get the deduction if paying a babysitter enabled them to go to work or school....paying a sitter so they can go to the movies is not deductible.