If I nanny for the summer, do i have to claim the money I make on my taxes? Or do I have to make a certain amount to have to claim it? I will be subbing for the school district during the summer as well, so I will be claiming that job on my taxes. But do I have to for the nanny position?
2007-04-11 12:07:37 · 3 answers · asked by Candy 2 in Education & Reference ➔ Teaching
Not unless taxes are taken out or you have a 1099 that you get from the person you nanny with. If it is cash or a personal check definitely not. Plus if it is cash or a personal check you have to have copies or proof of all money that you earned so that if you get audited then you have proof you made the money and weren't just lying about your wages.
2007-04-11 12:28:03 · answer #1 · answered by bluecrystalsmile 2 · 0⤊ 0⤋
It is your total earnings for all work done during the year which determine whether you need to pay taxes or not, so if you already have earnings from subbing which will be claimed, the nannying needs to be claimed too.
2007-04-11 13:26:49 · answer #2 · answered by neniaf 7 · 0⤊ 0⤋
Yes, you will have to claim it on your taxes. Whether you receive a 1099 or not is irrelevant. You earned income, therefore it is reportable.
You will need to discuss with the family how they are handling this. Are they hiring you as a household employee? Or are they going to claim day care expenses? Both will affect how your taxes and your income is dealt with.
With the first, you are an employee and they are responsible for withholding federal income tax, and FICA from your check(~7.5%), as well as paying into FICA(~7.5%) on your behalf.
As for the second, you are considered self-employed, and are responsible for making the entire FICA payment. You will get an adjustment of your income for a portion of it, but the rest will be added to your final tax bill.
Either way, there are tax implications for both you and your employer. Discuss it with them thoroughly!
2007-04-11 23:48:07 · answer #3 · answered by usafbrat64 7 · 1⤊ 0⤋