Also are there any special laws or fees, or processes that are associated with babysitting in the state of maine?
2007-07-01 06:14:53 · 6 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Gypsy Girl above is giving you exceptionally bad advice about claiming this income! If you have $400 or more in self-employment income you are required to file a tax return and pay any taxes due. You have no way of knowing if the IRS will be informed of the money you were paid and not claiming the income could be VERY expensive for you if you failed to claim it.
This is a business activity and the income is subject to both Self-Employment tax at 15.3% of the net profit as well as income taxes as ordinary income. You'd file Schedule C-EZ with your Form 1040 return to figure your net income. Then you'd attach Schedule SE to calculate the Self-Employment tax. Furthermore if you expect to owe more than $1,000 for the year -- you'd hit that in SE tax alone at about $6,500 in net income -- you must make quarterly estimated income tax payments using Form 1040-ES.
2007-07-01 07:01:07 · answer #1 · answered by Bostonian In MO 7 · 4⤊ 0⤋
Money earned as a babysitter is taxable income. If you were 18 or over at the beginning of the year, you are subject to self-employment tax if your earnings are $400 or more. A previous answer described this situation.
If you were under age 18 at any time during the year, and you are not a professional babysitter (for example, if you are a student), then you are not subject to Social Security or Medicare taxes. You will not file Schedule SE. If babysitting is your only income, you will not owe income taxes if your income is $5,150 or less, and you will not have to file a tax return. If your income is greater than $5,150 you will owe some tax if you are a dependent.
If you file a federal return, you need to file a state return as well.
2007-07-01 09:53:49 · answer #2 · answered by ninasgramma 7 · 1⤊ 0⤋
Is Babysitting Taxable Income
2016-11-08 00:21:09 · answer #3 · answered by ? 4 · 0⤊ 0⤋
Be careful. If you didnt pay FICA on the babysitter, you can be hit for the total amount due since the sitter started working for you, plus interest and penalty. It is a legitimate expense, if the nature of the meeting with your partner was business related.
2016-03-19 05:08:52 · answer #4 · answered by ? 4 · 0⤊ 0⤋
Technically you do and it will be taxed as self employment. However, if you were paid cash and did not give you SS# to the people you were babysitting for, there is no way for the government to trace it so you will be safe in not claiming it. If you were paid by check or gave your SS#, the parents probably claimed the deduction and the government will be looking for that amount to be reported on your tax return.
If you want to know more, you can get publication #17 from the IRS website (www.irs.gov) and read the sections on self employment and child care. That will give you the most accurate information. Ordering the publication is free.
2007-07-01 06:27:07 · answer #5 · answered by Gypsy Girl 7 · 0⤊ 4⤋
Do you have a babysitting business? If so, then yes.
Are you making a substantial amount of money of babysitting? If so then yes.
If you answered no to both of those, then no.
2007-07-01 11:20:26 · answer #6 · answered by greencoke 5 · 0⤊ 1⤋