How do I file taxes as a babysitter?

Question

I'm sorry, if this question has been asked a 100x already. I just got my greencard. I go to school, but I also want to do some babysitting. What do I have to do concerning filing taxes? Do I need a liscence? Do I have to keep track of my monthly income? Are certain things deductable (gas)?

Answer 1

If you are hired as an employee, your employer will be responsible for withholding taxes. All you will need to do is file your taxes every year. However, it is more likely that you will be an independent contractor. In that case you will need to file Schedule C (business gains and losses) and SE (self-employment taxes) with your tax return. Also, it is likely that you will need to file your taxes on a quarterly basis.

Depending on how much you think that you will be earning while being a student. I recommend setting aside at least 35% of your earnings to cover the potential taxes. Once you have a better idea of how much that will be, then you can make the proper adjustments.

Review IRS Publication 334 for more details of what you can deduct.

Answer 2

When you seek work, the person hiring you should tell you if they are paying you as an employee (which they should if you do the work in their home) or an independent contractor.

If it is the latter and you are paid in cash, get in the habit of a keeping a log of the money you made and depositing it once a week into a checking account. The IRS expects you to report all income and be able to show that you actually got it.

As a greencard holder, you have an extra incentive to do everything correctly from the beginning.

As for expenses, generally if you have only one job/one location per day, gas will be classified as commuting and commuting is not deductible.

Answer 3

Where have you done the babysitting? In your home? then you had a filing requirement once you hit $400. In their home? Once the amount paid exceeded $1800, they were required to issue you a W-2 and withhold for fica/mc. Even with a W-2, you had to file once you exceeded total income of $5950 (if a dependent) or $9750 if not a dependent. Patty do you have actual proof you were paid $120 a week? The IRS isn't going to give you ACTC or EIC for your child if you can't prove you made this money.

Answer 4

MJ1977 and Nate_82 are telling you to commit tax fraud, not a good idea for anyone – can result in serious consequences if and when you get caught. Mukata explains correctly how to file, although you can probably use schedule C-EZ instead of schedule C – it’s simpler. V B gives correct advice on gas for commuting not being deductible, and on status of employee vs. contractor – be aware that many employers illegally hire babysitters in their homes as contractors.

Answer 5

You will be treated as self-employed person. You must file return if your self-employment income is $400 or more.

With your tax return, you will complete schedule C (Form 1040) on which you will record your income and work related expenses. You can deduct all the work related expenses.

Your self-employed income from schedule C is subject to employment tax at 15.3%. For this, with your Form 1040, you attach Schedule SE (Form 1040).

You must file your tax return for 2007 income by April 15, 2008.

Answer 6

I would not worry about it. Just get paid in cash and do not give your Social Security number out to anyone that you babysit for. Just remember this, you are only doing this for a short period. People who take money under the table for long periods of time are doing themselves in later on because nothing gets reported to Social Security. Then when they try to collect from Social Security they are not able to collect anything.

Answer 7

Just forget about it. It's technically illegal, but the IRS will never know. You'd probably end up getting most or all of it back anyway because I can't imagine you're making a fortune babysitting. When you pay taxes you're supporting Bush's global terrorism anyway... the world will be a better place if you just keep your money for yourself.

Answer 8

you going to have to set up acct with irs and tell them how much you bring home..........please do not tell the truth about your cash!!!!!!!!If you make 300 just say 190.00 the more you admit to the more you going to take your money..monthly you gonna have to pay tax plus state taxes if apply,ssd,madicare it depends on your state