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how do I pay taxes adn social security on wages earned while babysitting

I am starting a babysitting job soon that pays cash. How do I report the income at the end of the year as well as pay taxes on it and social security? I would be making $800 a month

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katiekruschke

Asked by katiekruschke at 9:49 PM on Jul. 6, 2009 in Money & Work

Level 13 (1,043 Credits)
Answers (7)
  • You will need to pay estimated tax quarterly. Call the income tax office for forms or print them out from online. irs.gov, I think. For social security- or self-employment tax, this gets paid when you fill out your income tax forms.
    Bmat

    Answer by Bmat at 9:55 PM on Jul. 6, 2009

  • That's under the table money. Why would you want to tell the IRS about it.
    Anonymous

    Answer by Anonymous at 10:02 PM on Jul. 6, 2009

  • because they are claiming it with the childcare tax credit they need a statement from me telling the irs how much they paid ME therefore I have to report it
    katiekruschke

    Answer by katiekruschke at 10:10 PM on Jul. 6, 2009

  • Anon 9:02 - You want to tell the IRS because it is the right thing to do. You may wish to consult with an accountant; you will probably pay a lot less taxes if you form a PC or LLC and pay yourself a salary.

    The IRS can explain how to handle the quarterly taxes: Call the IRS 1-800-829-1040 - Hours of Operation: Monday – Friday, 7:00 a.m. – 10:00 p.m. your local time (Alaska & Hawaii follow Pacific Time).
    rkoloms

    Answer by rkoloms at 7:24 AM on Jul. 7, 2009

  • You will probably want to check out the numbers to make sure that the income they are paying you is sufficient. With FICA (Social Security & Medicare), as a self-employed individual, you will be responsible for the entire 15.3%, rather than just the 7.65% you would pay as an employee. You will also have federal and state income tax (if your state has an income tax) in addition to the FICA.

    Good luck!
    justkima

    Answer by justkima at 9:54 AM on Jul. 7, 2009

  • I babysit and don't report my income. Seams like a waste for a small amount of money to me. Why even bother? We pay so much in taxes every week to begin with and hardly see any of it back to begin with. That's my money and grubby politicians aren't getting their dirty mitts on it.

    Anonymous

    Answer by Anonymous at 11:26 AM on Jul. 7, 2009

  • To Anon 1026 - you are legally required to report income paid to you from a single source when it is over $600 a year. Why do you people think that cheating on your taxes is ok? Where do think that they money comes from to pay teachers, fire fighters, police, etc.? Libertarians should start their own country if they hate government so much.
    rkoloms

    Answer by rkoloms at 3:58 PM on Jul. 7, 2009

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