do i have to claim babysitting money if on a regular basis?

Question

If I get $ each week for watching a child do i have to claim it? How much can I earn before claiming. I am a stay at home mom watching one child during the day. Do I have to report the money?
Thanks

Answer 1

If it's your only income for the year, you have to report it if the total is over $399 for the year. If you file a return for other income though, such as a joint return with a spouse, then you have to report it from the first dollar. So yes, sounds like you'd have to report it and pay tax on it. Your babysitting is considered self-employment, so you'll owe income tax and self-employment tax (for social security and medicare) on the amount. You'll report the income on a schedule C or C-EZ, and also fill out a schedule SE. The numbers from the bottom of those two schedules will transfer to your 1040.

Answer 2

You might consider this idea: Go into one of those tax preparation offices in January or March (the months they are less busy) - and ask about your total tax situation. Here's some of the topics you'll need to ask them about: 1) Self Employment 2) Earned Income Credit (if you/your spouse have kids and income under $40k ish) 3) Home Office 4) Special rules for Food for day care. 5) Quarterly tax payments 6) Recordkeeping for expenses 7) Licensing requirements - some states say no license for family, but licenese for more than 3 kids and CPR training required. Now, as another person posted, yes, the IRS has no way of knowing about your income, but you want professional advice in case you were ever audited, or need 40 quarters of social security contributions to qualify for social security, or if your EIC and other credits outweigh not filing at all.

Answer 3

You have to report this money unless you are not otherwise required to file a tax return, do not actually file a tax return, and the net profit from babysitting is less than $400.

Examples:

If you are unmarried and your net profit from babysitting is less than $400 and your total income is less than your filing requirement ($5,350 for single), then you do not have to file a tax return or report the income.

If you are filing a tax return whether required to file or not, then any babysitting income has to be claimed on your tax return.

Answer 4

I believe, and am reasonably certain, that, as far as the IRS cares, any and all income is to be reported. I'm also certain that a business license is required by law to accept money for any service given.

Answer 5

I have never heard of anyone reporting it unless they had a licensed daycare business .

But you could do it , the IRS would be really happy to take your $$$$$$ .

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Answer 6

Only if you make more than $400/year. Nobody but YOU knows how much you make! So there.