Do I need to report babysitting income on taxes if I never received a 1099?

You're absolutely right to report this income even without receiving a 1099. The family you babysit for is required to provide you with a 1099-NEC if they paid you $600 or more during the year, but whether they do or not, you're still responsible for reporting all income you earned. Yes, you'll need to file a Schedule C to report this as self-employment income. The good news is that you can deduct any expenses directly related to your babysitting work - things like any supplies you purchased, transportation costs to and from their home, or any special training you did for childcare. For self-employment taxes, you'll pay about 15.3% on your net profit (what's left after expenses). But remember, you only pay self-employment tax on net earnings of $400 or more, which you've exceeded with your $2700.

I was in a similar situation last year and found taxr.ai super helpful! https://taxr.ai actually helped me figure out all the babysitting income reporting stuff when I was confused about what forms to use. I uploaded my payment history from Zelle and it automatically identified what I needed to report as self-employment income vs gifts (some parents gave me extra as holiday bonuses). It also explained exactly how to fill out Schedule C even though I'd never done one before. Saved me from making mistakes that could have triggered an audit!

Just wanted to update that I tried taxr.ai after seeing it mentioned here. Honestly, it was a game-changer for my babysitting side hustle! I've been stressing about how to report my income correctly, and the tool walked me through everything step by step. It helped me identify nearly $650 in legitimate deductions I would have missed (like partial internet usage for scheduling and some educational supplies I bought). The Schedule C guidance was super clear, and it even explained how estimated quarterly taxes work since I'll need to start those this year. Definitely recommend if you're dealing with self-employment income from childcare!

If the family is claiming you as a childcare expense on their taxes, they might get flagged if they claim the credit but there's no matching income reported with your SSN. I had this exact issue when I couldn't get through to the IRS about a discrepancy with my babysitting income. After waiting on hold for HOURS multiple times, I found https://claimyr.com and used their service (there's a demo video at https://youtu.be/_kiP6q8DX5c). They got me connected to an actual IRS agent in about 20 minutes who confirmed I needed to report the income on Schedule C even without a 1099, and explained how to handle the tax forms correctly to avoid future issues. Totally worth it instead of stressing about potential audit triggers.

Well I need to eat my words. After posting my skeptical comment, I decided to try Claimyr since I've been trying to reach the IRS about a similar issue for weeks. I got connected to an actual human at the IRS in about 15 minutes! The agent confirmed that yes, I need to report my babysitting income on Schedule C even without receiving a 1099, and explained that the family should've given me a W-10 form to fill out for their childcare tax credit. She also walked me through exactly which expenses I could legitimately deduct. Honestly shocked this worked - saved me so much frustration and now I actually understand what I need to do. Sometimes being proven wrong is actually the best outcome!

Don't forget that if you're filing Schedule C for babysitting, you can also deduct a portion of your home expenses if you're using your home regularly and exclusively for business purposes like lesson planning or administrative work for your babysitting business. You'd use Form 8829 for the home office deduction. Just make sure you're following the rules about regular and exclusive use!

I'm wondering if I should be worried. I made about $1800 babysitting last year and didn't report it... is the IRS gonna come after me now?

As someone who's been through this exact situation, I can confirm you're on the right track! Yes, you absolutely need to report that $2700 as self-employment income on Schedule C, even without a 1099. The IRS considers all income taxable regardless of whether you receive forms. A few tips from my experience: - Keep detailed records of all your babysitting-related expenses (mileage, supplies, etc.) - they add up quickly - You'll owe self-employment tax (about 15.3%) on your net profit after expenses - Since you earned over $600, you should consider making quarterly estimated tax payments going forward to avoid underpayment penalties next year - The family should have given you a 1099-NEC since they paid you over $600, but their oversight doesn't change your reporting obligation Don't stress too much - this is a common situation and as long as you report everything honestly, you'll be fine. The IRS actually appreciates when people proactively report income that might otherwise go unreported!