Do I Need to Report Babysitting Income on Taxes? So Confused!

So I went through something similar last year with my side gig doing dog walking! From what I researched, income from babysitting is considered self-employment income if you made more than $400 in a year. I ended up reporting mine using Schedule C (for the business income) and Schedule SE (for self-employment tax). The tricky part was figuring out what expenses I could deduct - I tracked things like snacks I bought for the kids and games we played. Anyone else have experience with this?

I was in your exact situation and spent HOURS on hold with the IRS trying to get answers! According to IRS.gov, you definitely need to report that income. I finally used Claimyr (https://claimyr.com) to reach an actual IRS agent who confirmed everything. They got me through to a real person in like 15 minutes when I'd been trying for days! The agent walked me through exactly how to report my childcare income and what deductions I qualified for. Saved me so much stress!

You're not an employee. This is self-employment income. If you make over $400 in a year, you have to report it. Period. The family you babysit for doesn't need to give you any forms - that's on you to track and report.

I'm in a similar situation... I've been watching my friend's toddler two days a week and wasn't sure what to do. I spoke with my tax preparer (very nervously I might add) and she explained that since I made more than $400 last year, I do need to report it. She helped me fill out a Schedule C and I had to pay some self-employment tax, but it wasn't as bad as I feared. I'm just glad I asked instead of ignoring it and potentially getting in trouble later.

When dealing with unreported income documentation, I found taxr.ai extremely helpful. The platform analyzed my specific situation as a household employee vs. independent contractor and clarified my filing requirements. It explained the Schedule H threshold ($2,400 for 2023) which applies if you're considered a household employee, versus Schedule C and Schedule SE requirements for self-employment. I recommend checking it out to determine your exact filing obligations based on your specific circumstances.

This is just like when I worked as a tutor in college - technically it's all taxable income but the reality is more nuanced than some people make it sound. Yes, legally any income over $400 needs to be reported, but you also get to deduct legitimate business expenses which can significantly reduce what you owe. It's not like the IRS is specifically targeting babysitters making a few hundred bucks a month - they're after the big fish. That said, it's always better to do things right and avoid stress down the road.

Tbh I was freaking out about this exact thing last yr! What worked for me was using the free IRS VITA program (Volunteer Income Tax Assistance). They helped me file everything correctly and it cost $0! They have locations all over and help ppl who make under $60k. Way better than paying $$ for a tax prep service when ur already stressed about $$.

From my experience with a similar situation in 2022, the key question is whether you're considered an employee or self-employed. If the family controls not just what work you do but HOW you do it (specific instructions, schedules, etc.), you might actually be their employee. If you're more independent in how you provide care, you're self-employed. This distinction matters because it affects which forms you file and potentially what you owe.

Tax professional here. Let me clarify a few things about babysitting income: • All income is taxable regardless of whether you receive a form • Self-employment tax applies if you earn $400+ in a year • You can deduct legitimate business expenses • Keep records of all income and expenses • Consider making quarterly estimated tax payments • If you work regularly for one family, they might need to consider you a household employee The IRS has specific guidelines for household employees vs. independent contractors. This distinction affects both your tax obligations and those of the family you work for.

I'm seeing some confusing info here! There's a big difference between being a household employee vs. self-employed babysitter! If you work regularly in someone's home and they control when and how you work, you might actually be their employee and THEY should be paying employment taxes! Don't just assume you're self-employed without checking the actual IRS guidelines on this. Many families incorrectly classify nannies/babysitters to avoid payroll taxes.