I babysit to earn enough money for groceries. Do I have to pay the irs tax on my grocery money?
Its not like I make alot of money babysitting for in-laws. My husband earns a living. I just babysit for cash to buy our food. He earns enough to pay the bills, but not much left after that. Now if I have to pay taxes on the little I make from babysitting—————-well I guess I won’t be buying groceries.
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Technically yes..logically no..unless you give the person who pays you your social security number there is no way the IRS could ever find out
Not if its under $7,000 dollars. If it is, you eat alot of food!
I think there is a cap, if you make over a certain amount a year, you are supposed to claim it, if you stay under that, you are fine. Not sure of the amount, ask an accountant.
If you don’t tell i wont.
Legally, yes you have to report the income if it is over $600 per year. Doesn’t mean that every week you have to send the IRS money. You just have to report the income at the end of the year. Depending on your tax bracket, deductions, etc… you may or may not owe taxes on the extra income but you do have to report it.
It depends on your tax filing status. If you file a joint return, you may have to add it in. If you file a single return, your earnings will not be above the minimum, which was $10,000 last year. So you won’t owe taxes.
If your in-laws are taking a Child Care deduction on their 1040, you may have to report your income. It just doesn’t make any sense for them to do that since you are family. Find out what they are doing and seek the help of a professional tax expert. It may not cost anything for that kind of advice.
Technically speaking, any income earned is taxable. I don’t know how much you’re talking about here, but most people tend not to claim just a few hundred dollars in cash jobs like yours. If your babysitting clients aren’t deducting your fees as a child care expense, then chances are that the IRS won’t be aware of the arrangement since there’s no “paper trail”.
As a cpa, though, I’m obliged to tell you that all earned income should appear on your tax return, whether or not you’ve received any tax documentation regarding that income.
If they are paying you in cash, there is really nothing they can do about it, unless you say something to them.
if whomever you are babysitting for chooses to claim the money paid to you as childcare expense on their return then yes you have to claim it and only if its over $600 for the year combined total..and you will know if they are claiming the expense if they ask for your social security #
I really like the respones when people do not want to pay taxes. As a CPA i always tell people, Richard Hatch is looking for a roommate.
All income is taxable, unless the tax code exempts it.
There is no difference between you working for Sears and your in-laws, income received from both of them is taxable. The downside is that if you get hurt at Sears they pay workers comp and unemployment, your inlaws do not.
You get a lower amount from your inlaws because you do not declare it as income and they cannot deduct it. That is the choice you have made.
I don’t know where the two answerers above came up with the idea that you don’t have to file taxes unless it is over $7000 or over $10000.
In the US, any amount you make is taxable.
If they are paying you cash under the table, that is the risk you are taking…people do it all the time.
But if they are taking the child-care deduction on the money they pay you, you better be filing.
Haven’t you heard stories of people who were running for a political office and got in trouble because the government found out they weren’t giving their household employees (babysitters, maids) 1099’s?
Technically yes, realisitclly no. Unless the person you’re babysitting for is reporting the money they give you to the IRS, there’s no way the IRS would even know about it. Thus there’s nothing to file.
Assuming your parents can claim you as a dependent, the instructions for the 1040 state you have to file if you meet any of the following conditions: Your unearned income was over $800. Your earned income was over $5000.
The short reason is, if your income is less than that, your taxable income will be zero.
Actually it wouldn’t be a bad idea to file a Sch C with your 1040 for 2006. With all legitimate expenses you could very well have a loss. Therefore paying even less in taxes. These expenses could include but not limited to telephone, food for children, part of your utilities, and any other expenses you incure in your babysitting.
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