I am a nanny for three different families. I get paid in cash. Do I need to claim taxes still? OR do the families I nanny for claim taxes? If I do have to claim taxes how do I go about that? THANKS!
2007-08-17 04:04:35 · 2 answers · asked by Jessica 2 in Business & Finance ➔ Taxes ➔ United States
You definitely do, and they might have to. If you work in their homes and they set the rules and the times you are there, then technically you are an employee of theirs, and they should be taking out taxes from your paycheck and paying employer taxes and giving you a W-2 at the end of the year.
But if they don't, you are required to pay taxes on your earnings. You'd show the earnings and any deductible associated expenses on a schedule C, use a schedule SE to calculate your self-employment taxes, and file a 1040 showing the numbers from both of these.
2007-08-17 04:15:43 · answer #1 · answered by Judy 7 · 1⤊ 0⤋
If you are a household employee and are paid over $1,500 in a year by that employer, they are required to withhold social security and medicare taxes. Withholding of income tax is voluntary. The tax is reported by the employer on Form 1040, Schedule H (as in Household.) If they don't give you a W-2 at the end of the year and the earnings don't show up on the social security record that is sent every year it will affect your benefits for the rest of your life. Call IRS to complain.
2007-08-17 17:50:02 · answer #2 · answered by Anonymous · 0⤊ 0⤋