If you pay taxes as self-employment, will it be considered as a Business?

Question

I work as a child-care provider. I do it at my home, and every year I pay my self-employment taxes. I have been doing it for 3 years now. I have 7 children that I care for on a daily basis. Would this be considered as my own business?

Answer 1

Yes, it is a business. I hope you have been writing off your expenses before paying taxes.

Answer 2

Your acquaintance is incorrect on a pair of things. First, if someone has a activity, all gross sales that he takes in is gross earnings and reported on line 21 of prefer 1040 as "different earnings." 2d, there isn't any cutoff below which an activity ceases to be a employer and could become a activity. expenditures of the activity could be deducted as miscellaneous deductions on schedule a situation to a 2% of AGI floor. A activity won't deduct a loss. A employer is done in the main for a earnings reason. A employer could deduct a loss, yet whilst the taxpayer maintains to deduct losses for a quantity years, his earnings reason is many times challenged. The IRS will assert that a employer is extremely a activity, and rigidity amendments changing the activity to a activity.

Answer 3

I hope you have been keeping track of all your out of pocket expenses that comes along with child care such as clothing, diapers, toys, food, utilities at home, gas and mileage when you take them somewhere and pick them up etc. If you have not then you should go to your nearest tax professional and do an amendment for the past 3 years you have been doing this.........

Answer 4

Yes it would. However, in light of your question, I wanted to ask or rather ensure that you are not doing this as a sole proprietor. While you would still be considered a business, you are left open for massive liability.

Answer 5

By definition, for tax purposes, it's your own business.

Answer 6

Yes, it is a business.