Do you have to include babysitting income on a tax return?

Question

My wife did some on and off babysitting for a local mother. Total income might be around $800 - $1000, but I am not sure and the lady didn't do any type of W2. Now the lady wants to write off money paid for babysitting, but I didn't include it in my return.

Answer 1

Your spouse would have to give her SSN, name, and address to the mother, and a written statement as to how much money was paid. Figure out how much was paid, don't let the mother figure it out or you may find yourself owing more tax if the mother overstates the amount paid on her return.

Then, you'll have to amend your return and add the income, using a Schedule C. If the children were in your home, then you may have additional deductions for the use of your home.

With this amount of income, hopefully you can get the net profit down below $400 and owe no Social Security or Medicare taxes.

Answer 2

Legally, yes you do, although it's a common place for under-the-table work when the payer isn't writing it off.

You'll have to file an amended return including that income. It will go on a schedule C-EZ, and you'll also need a schedule SE to calculate self-employment tax. The SE tax will be 15.3%, plus whatever income tax is owed on the additional income.

Answer 3

Legaly and ethicaly "yes" But she is suppose to tell you in advance since the rate depends on it. As long as she din't have u r s.s #
she can't do much. Since you alredy filed ur returns as I asume,you have to file a ammenment and it is a hassle and not to metion it will flag you. So tell her No.

Answer 4

If the lady is going to report what she paid you, then you certainly are going to have to report it as income.