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babysitting and income tax....

I have never filled income tax on my babysitting money but a friend was telling me if i did I would get money back. For the whole year I made about $2550 and i have myself and my child to claim too. Does anyone know anything about if I would get money back have to pay in or what?? I also get foodstamps if that makes any difference. Another thing does the child I keep do thier parents have to know I am doing the babysitting on my taxes this year. Sorry I know nothing about claiming taxes any help will do

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Anonymous

Asked by Anonymous at 11:21 AM on Nov. 24, 2010 in Money & Work

Answers (8)
  • If you claim your babysitting money, you have to let the parents know (because they can claim it on their taxes). You may or may not get money back - you should use one of the free tax programs and see what the results are.
    Scuba

    Answer by Scuba at 11:24 AM on Nov. 24, 2010

  • If that is your only income and no-one else claims you, you should recieve some earned income money and possibly some child credit money. And telling the parents you are claiming it will help them save money on their taxes, so yes, you should tell them.
    Candi1024

    Answer by Candi1024 at 11:30 AM on Nov. 24, 2010

  • Instead of taking the word of your friend, talk to your local H&R Block about it and see what your options are.
    _Tam_

    Answer by _Tam_ at 11:56 AM on Nov. 24, 2010

  • I would say the opposite is probably true. If you haven't paid income tax, you would need to at tax time.
    HotMama330

    Answer by HotMama330 at 1:26 PM on Nov. 24, 2010

  • HotMama is right you will have to pay in for certain things like social security and medicare- though with an income though I think the first $600 you earn is tax free. I'm not certain on that so talk to a tax adviser.

    HOWEVER the other ladies are also right, you should get earned income tax credit which will probably more than offset how much you pay in taxes.

    According to the tables I pulled up you'd get $867 back if you're single with a child making $2550 a year. Plus you'd get the child tax credit which is $1000 per child. so $1867... yeah you should file.

    http://www.irs.gov/pub/irs-pdf/p596.pdf

    Since you are self employed though, in the future if you make more than $400 you need to file quarterly estimates. I doubt they'll get mad at you this time, but just be aware of that. Good luck!
    Erica_Smerica

    Answer by Erica_Smerica at 3:08 PM on Nov. 24, 2010

  • Erica, did you enter that as household employee income? Some of the rules on that are a little different, such as having to pay quarterly and SS. But I don't remember exactly.
    Candi1024

    Answer by Candi1024 at 4:02 PM on Nov. 24, 2010

  • Nope. I just used the tables on that pdf. I have no idea how much she'd owe in ss, or medicare or anything like that. But the EIC is $867 and the child tax credit is $1000... Unless you have to make a certain amount to get the child tax credit. I know you have to be less than a certain income to get it-- but is there a minimum income you have to have too? I should probably look that up, but I also need to be packing.....................................

    Yeah happy Thanksgiving! OP I do think it would be worth your time to file. And legally I'd file anyway. It could save your buns in the future!
    Erica_Smerica

    Answer by Erica_Smerica at 4:18 PM on Nov. 24, 2010

  • 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).

    Be an honest person and file your taxes.
    rkoloms

    Answer by rkoloms at 8:43 AM on Nov. 25, 2010

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