Do Babysitters Have To Report Their Income on Taxes?

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?

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.