Income and Investments Do Babysitters Have To Report Their Income on Taxes? Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by Elle Martinez Published May 23, 2024 2 min read Reviewed by Jotika Teli, CPA Lena Hanna, CPA Working from home has been a wonderful way for parents to have more time with their children. The relative flexibility of a remote schedule allows people to earn money and avoid paying for daycare. Even so, there are times when some assistance from a babysitter is needed. Hiring a babysitter is beneficial for both parties. For the babysitters, it’s a little extra money on the side, and for parents, it gives peace of mind that their kids are in good hands. However, now that it’s tax time, the question stands – do our babysitters need to pay taxes on their income? Table of Contents Do Babysitters Have To Report Their Income on Taxes?Do Our Babysitters Need to File Taxes? Do Babysitters Have To Report Their Income on Taxes? According to the IRS, babysitters do need to report their income when filing their taxes if they earned $400 or more for their work. This income is basically from self-employment, so you don’t have to issue a 1099 if you pay a babysitter unless they earned $1,000 or more in 2024. A babysitter is considered a household employee, and if you paid $2,700 or more in 2024, you would have to withhold employment taxes since they would qualify as an employee. There are some exceptions to this rule if the care is provided by your spouse, your child under 21, your parent in certain situations, or someone under 18 if babysitting wasn’t their principal occupation. Do Our Babysitters Need to File Taxes? Another question that comes up with earning money from side jobs, especially with teenagers (and their parents), is whether or not to file taxes on that income. There are some factors you need to consider which can help you find the right solution for your situation. The IRS has laid out thresholds for those required to file. In general, if you’re a dependent of someone else, you generally need to file if you’ve earned more than $14,600 from your work or you’ve earned net income of $400 or more through self-employment, or your investment income is greater than $1,300. If you’re not a dependent and earn $14,600 or more if you’re single and $29,200 or more married filing jointly, then you will need to file. While you may not be thrilled with filing taxes, there can be some benefits for you. You may be able to get a tax refund from what you had withheld from your day job paychecks as well as additional tax benefits. Get started Previous Post Guide to Small Business Tax Forms, Schedules, and Resources Next Post How To Do Your Taxes for the First Time: A… Written by Elle Martinez Elle helps families at Couple Money achieve financial freedom by sharing tips for reducing debt, increase income, and building net worth. Learn how to live on one income and have fun with the second. More from Elle Martinez Visit the website of Elle Martinez. Follow Elle Martinez on Facebook. Follow Elle Martinez on Twitter. 2 responses to “Do Babysitters Have to Report Income on Taxes?” Im single over 18 and have been working as a babysitter for 2+ years will I get in trouble for not filing? If yes how should I file? Reply If someone receive more then $2,100 in 2018 for watching a friends baby, not in the parents house but in their own, can they be considered an independent contractor and report it as self-employment? Reply Leave a ReplyCancel reply Browse Related Articles Crypto Understanding Crypto and Capital Gains Work 7 Things You Need to Know About the New Business Report… Work Using Form 8829 to Write-Off Business Use of Your Home Tax Tips Roth 403(b) vs. Roth IRA: Which Should You Invest In? Life Interest Rates, Inflation, and Your Taxes Investments Essential Tax Tips for Maximizing Investment Gains Uncategorized TurboTax is Partnering with Saweetie to Elevate Hoop Dr… Business Small Business Owners: Optimize Your Taxes with a Mid-Y… Small Business The Benefits of Employing Your Children and the Tax Bre… Income and Investments Are Olympics Winnings Taxed?
Im single over 18 and have been working as a babysitter for 2+ years will I get in trouble for not filing? If yes how should I file? Reply
If someone receive more then $2,100 in 2018 for watching a friends baby, not in the parents house but in their own, can they be considered an independent contractor and report it as self-employment? Reply