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2 Bumps

taxes

I have never in my life filed taxes I babysit and just never did it....well a friend says i will get money back since i have a child to claim under me.....I made about 5000 this year in child care. Can anyone help me figure out how much i would get back or if i have to pay in. I went to the calculator on H and R and it said I would get like 1400 but is that right....plus if I say I spent money on self employment then I get less I don't understand that.

Answer Question
 
Anonymous

Asked by Anonymous at 7:26 PM on Jan. 12, 2011 in Money & Work

Answers (5)
  • well you don't claim the kids you watch...i know you can deduct expenses but you also have to pay taxes yourself.
    Anonymous

    Answer by Anonymous at 7:28 PM on Jan. 12, 2011

  • i have a child of my own
    Anonymous

    Comment by Anonymous (original poster) at 7:30 PM on Jan. 12, 2011

  • $1400 sounds about right. But the people that paid you DON'T have to report child care expenses. It's like if they donated $10,000 to charity the can report it and get a tax write off, or not. Either way it DOES NOT effect the charity.

    Anyway you'll probably have to show documentation on income. Could you? Technically speaking you are self employed. If you are self employed and make over $400 then you are supposed to file your taxes quarterly. So say you expect to make $5000 next year. Every three months you need to send the government money for social security tax and medicare tax. And if you ever make more than about $15,000 in a year then you'll have to send a little bit of money in for Federal taxes.

    Continue:
    Erica_Smerica

    Answer by Erica_Smerica at 8:32 PM on Jan. 12, 2011

  • The money you are getting is from the child tax credit and the earned income credit. The earned income credit works like a bell curve. It varies a little depending on how many children you have and whether or not you are married- but basically the more you make the more money you get back UNTIL you reach a certain point and then it starts going back down again. I hope that makes sense.

    So if you made say $10,000 you'd get about $3000. But if you made $20,000 you'd only get about $1000 back. See how that works? So in this case it really might be best for you not to claim your business expenses. But talk to a tax prepare to make sure.

    And yes it looks like the H&R calculator is correct. If you're filing head of household and claiming your daughter you should get back about $1400- assuming you didn't pay taxes on the $5000 that you made babysitting.

    Good luck =)
    Erica_Smerica

    Answer by Erica_Smerica at 8:37 PM on Jan. 12, 2011

  • The H&R Calculator is pretty right.. It worked for me and my hubby last year so I would go for it
    mommato2boys79

    Answer by mommato2boys79 at 1:21 PM on Jan. 13, 2011

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