As a nanny do I have to claim taxes?

Question

I get paid mostly in cash, partial in check, and I don't think they'll be claiming. If they don't claim do I have to? I make $375/week and usually get $125 in a check.

As a nanny working privately why would I have to claim anyway? (okay that sounds niave, but I just wonder why I would have to claim if this is a private job and not through an agency....)

Answer 1

If they don't pay social security or take out taxes for you are supposed to claim it (Income). Most people don't claim money paid in cash.You could just claim the check & not the cash. A lot of people work (Under the table for cash.) It's all up to you.

Answer 2

You may qualify for a credit for child and dependent care expenses, just as if you'd taken your kids to a day care center. There is what's called a "Nanny Tax" which means you must treat the nanny as an employee. You're responsible for payroll taxes, adherence to labor laws, and issuing a W-2 to the nanny at year end to show gross income, FICA withholding, federal tax withholding, and state tax withholding. You're entering the realm of being an employer. Get professional assistance to help you set up payroll. If you make a mistake as an employer, it's a much more urgent situation than when you make a mistake on your individual tax return. Don't let it get messed up. Do it right from the start.

Answer 3

Legally yes you do, whether you get paid by cash or check, and whether they claim a child care credit for it or not. If you don't, you are illegally evading taxes, and there is no time limit on when the IRS can come after you for tax evasion if you just don't file.

You are required to claim it because it's income and the law says you have to.

Answer 4

1. You are self employed. You must file your tax return if your income is $400 or more. (Your income is payments received minus your job related expenses.)

2. On your income you pay 15.3% SE taxes (social security and medicare). For this you file schedule SE (Form 1040).

3. Then you may have federal income tax or state income tax. You may even get a refund if you get Earned Income Credit, Chid Tax Credit/Additional Child Tax Credit.

4. If this is your first year, then make sure to file your taxes before April 15, 2008.

Answer 5

Are you contributing to your social security? It doesn't sound like it. By the way who ever is paying you is not contributing to your social security account either as your employer. What would happen if you got injured while working? I bet your employer is not paying workmen's compensation. I suspect that your employer may be claiming the $125 check. You are only hurting yourself (financially) by accepting this type of compensation arrangements.

Answer 6

The IRS taxes all income. Income is taxable regardless of whether you were paid by check or cash.

Answer 7

yap u have 2