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How do taxes work if I get paid cash for babysitting?

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Anonymous

Asked by Anonymous at 12:38 AM on Sep. 25, 2009 in Money & Work

Answers (6)
  • Well, if you're planning on making it into a business.. like a "daycare" type, then it would be considered a "small business tax" and an accountant can assist you with that.
    If you're just.. doing it for side money - I don't think you have to report it? This is tricky... because, wouldn't teenagers have to pay taxes for watching kids on a regularly basis? Even if it's just strictly weekends? I think it'd be "under the table" though it sounds pretty awful. :]
    K_Sawyer

    Answer by K_Sawyer at 12:59 AM on Sep. 25, 2009

  • But I need to apply for WIC and FS.
    Anonymous

    Answer by Anonymous at 1:02 AM on Sep. 25, 2009

  • Uh no you don't need to claim it.
    Anonymous

    Answer by Anonymous at 2:18 AM on Sep. 25, 2009

  • You do have to report it as income. You can get in big trouble if you don't. You should learn about this when you become certified as a child care provider by the state.

    If you file joint taxes it has to be included as your income. If you aren't married then you have to include it in your taxes.

    The people you babysit for could always turn you in and you will always have to worry about that. You would owe back taxes, penalties, late fees, ect.

    You are even supposed to report money made from a yard sale on taxes!
    Gailll

    Answer by Gailll at 3:17 AM on Sep. 25, 2009

  • I suggest you at least claim it on your taxes...even if it means you are fudging your WIC and other program apps. At the end of the year, when the people you sit for are filing their taxes, they will more likely than not want to deduct the cost of child care...and will name you as the provider. They are supposed to have your tax # or ss# to reference. If you fail to provide it...you can be turned in and investigated. Also risk investigation for PA and WIC. It is a really tricky position to be in, because technically it isn't income until it is reported, but it can be used against you more often than not. I would be honest with your applications, and declare it on your taxes at the end of the year. Good Luck
    Cheapsk8mom

    Answer by Cheapsk8mom at 4:47 AM on Sep. 25, 2009

  • 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 6:16 AM on Sep. 25, 2009

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