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SAHM doing "daycare" for family friend question-do i have to file taxes on that money and how does it all work

I am a stay at home mom and i am going to start doing "daycare" for a friend starting in march, she has one baby. It will be 40 hours a week and she is paying me 100 bucks a week. Neither one of us know if i need to file taxes on that money or even how to go about with that whole situation. Does any body know what we are suppose to do and how.

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Anonymous

Asked by Anonymous at 11:25 AM on Feb. 25, 2010 in Money & Work

Answers (11)
  • Yup if you make over $500 a year you need to claim it.
    Raeann11

    Answer by Raeann11 at 11:27 AM on Feb. 25, 2010

  • I don't think so. It wouldn't be considered daycare, just babysitting.
    Anonymous

    Answer by Anonymous at 11:29 AM on Feb. 25, 2010

  • Hi I have been babysitting for 5 years in my home and I love it.


    The way I started we registered through the state and when it is time to file your taxes you just add it with what you are filing that is it. I babysit 4 toddlers/kids 100.00 dollars a week M-F (Good and decent money) Oh as far as the mom brining the child she too can file towards what she is claiming GL

    Anonymous

    Answer by Anonymous at 11:29 AM on Feb. 25, 2010

  • You could probably find better answers using google instead of cafemom answers.
    Anonymous

    Answer by Anonymous at 11:30 AM on Feb. 25, 2010

  • No you dont have to claim that income, but if you dont claim the income then she cant claim the deduction for paying child care.

    In order for her to claim the deduction she has to request you Social Sec. # and put it on the tax form.
    ria7

    Answer by ria7 at 11:31 AM on Feb. 25, 2010

  • To anon if you make over $500 and they find out you will get a fined. It is better to fill and not worry about that. My FIL is an accountant. I have babysit for my friend for 3 months. I had to claim it because it was over $500.

    Raeann11

    Answer by Raeann11 at 11:32 AM on Feb. 25, 2010

  • ok so i know i am suppose to fiile but how? like i just keep copys of my checks i get from her or what?
    Anonymous

    Answer by Anonymous at 11:52 AM on Feb. 25, 2010

  • YES. Any income over $600 per year you HAVE to file. Keep copies of your checks as well as a record either in a notebook or a spreadsheet on the computer or something. Detail exactly how much you make because you will have to include it as income and will have to pay taxes on it. So you might also want to save about 23% of each check in a separate account for tax purposes just to be safe.
    RutterMama

    Answer by RutterMama at 12:03 PM on Feb. 25, 2010

  • Join our group "Home Daycare Providers"!
    It's the best group ever, full of amazing ladies and tons of helpful advice!
    For taxes, YES you need to claim it.....Its called a Schedule C ... but, you can deduct a good percentage of ALL of your household bills, including rent/mortage, utilities, phone, etc. as well as ANY daycare-related items. You will probably show a loss for the first year or two, especially if you only have a couple of kids!
    You can either use your social security number or get a EIN # (dont remember off the top of my head what it stands for).
    christyg

    Answer by christyg at 1:09 PM on Feb. 25, 2010

  • christyg has the most informative answer. Yes, you will need to claim it. I provided day care for my nephew, she paid me cash, $75 per week, and I kept a log of what income I had from that. I also was able to deduct any meals, toys, diapers, clothes, etc. that I bought ONLY FOR HIM. You do use a Schedule C, it's not that hard, but I did call H&R Block's help line for answers. You should think about that as well. Good luck!
    doodlebopfan

    Answer by doodlebopfan at 2:01 PM on Feb. 25, 2010

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