I'm babysitting 2 days a week and making $30. I didn't know if I needed a tax id # for the lady I'm babysitting for to report this on her taxes. Can anyone help? Thanks!
2007-11-14 01:36:05 · 8 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
You already have one. Your SSN is your tax ID.
If you do not wish to give her your SSN you can get an EIN on the IRS website. That's normally used for employers to report payroll taxes with but is appropriate for self-employed individuals to use for business purposes instead of their SSN.
However if you provide the service in her home you are classified as a Domestic Employee and must use your SSN. Your employer must withhold Social Security and Medicare taxes from your pay. Most are unaware of this requirement, however that does not change the fact that it must be done that way.
2007-11-14 01:55:17 · answer #1 · answered by Bostonian In MO 7 · 2⤊ 0⤋
You do not need a separate tax id number. However, you can get an EIN through the link here:
http://www.irs.gov/businesses/small/article/0,,id=102767,00.html
Is the lady you babysit for working while you babysit? If so, she may be able to get a credit for child care. If she requests your tax id information, you are required to give it to her. You may give her your Social Security Number, or you can give you the EIN number that you obtained from the IRS. It is safer to give the EIN and not the SSN.
2007-11-14 02:38:46 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
Even tho it's a small amount, the lady you're babysitting for can still claim a credit for child care on her tax return. However, she will be required to record your social security number or tax id on the form for Child Care Expenses to do so. Your social security number is sufficient.
2007-11-14 01:51:21 · answer #3 · answered by ~RedBird~ 7 · 3⤊ 0⤋
I have worked as tax preparer. You do not need to provide her with a tax ID #...your social security number is what she needs to report for her taxes. You have to keep all receipts with dates to provide to her at end of year. If this is the only income you earn you probably don't need to file, but you can always go to irs.gov to check it out. No matter, anyone who pays for child care usually benefits on their taxes, so for her sake keep all transaction records and at the end of the year provide her a statement of services rendered, amounts paid, dates paid, the child's name and your info (including your ss#). And by law you should get this all to her by January 31 of year she has to file, but remember that some people like to file as early as possible, even January 10th or 15th.
2007-11-14 01:59:46 · answer #4 · answered by Anonymous · 1⤊ 0⤋
If you made over $850 you need to file an income tax return. However your Social Security number is all your "employer" needs
2007-11-14 01:52:27 · answer #5 · answered by Tom Z 7 · 0⤊ 1⤋
If you are receiving cash as a payment and the person paying you is filing it as an expence then yes you should report it. You don't want to end up with an audit that contradicts her filing.its not worth it. any amount is worth filing for.
2007-11-14 01:47:37 · answer #6 · answered by Kim S 2 · 2⤊ 0⤋
ok yea no it like a paper rote u dont have 2 file taxes its small jobs and ur gettin paid by owner by hand and that no enghough money so dont worry
2007-11-14 01:50:28 · answer #7 · answered by Anonymous · 0⤊ 4⤋
Simply put, no. Amount is too small to report.
2007-11-14 01:39:17 · answer #8 · answered by redwine 6 · 0⤊ 3⤋