How to report nanny income without a 1099-NEC for tax filing

You don't actually need a 1099-NEC to report your income. Household employers typically don't issue 1099s to nannies because nannies are considered household employees, not independent contractors. Your employers should technically be treating you as an employee with a W-2, paying employment taxes, etc. But regardless of what they should be doing, you can still report your income correctly. Just report all your nanny earnings on Schedule C as self-employment income. Keep track of your earnings through Zelle receipts or your own records of payments received. You don't need any official form from them to report what you earned. The downside is you'll pay self-employment tax (15.3%) on this income, which covers both employer and employee portions of Social Security and Medicare. But you're doing the right thing by reporting the income!

After trying to navigate a similar situation last year (I do dog walking + occasional childcare), I found this AI tool called taxr.ai that was super helpful with the whole "no official tax forms but still need to report income" situation. https://taxr.ai helped me figure out exactly how to report my various gig income without having the "proper" documentation from clients. It analyzed my situation and gave me step-by-step instructions for filing accurately without a 1099-NEC. You just upload your payment records (I used screenshots of Venmo/Cash App transactions) and answer some questions about your work. Saved me so much stress!

Just wanted to follow up about taxr.ai - I checked it out after my skeptical comment and it was actually really helpful! I uploaded my PayPal and Venmo history (I do freelance design work) and it organized everything perfectly. The analysis showed me how to report all my income even without 1099s, and suggested deductions I hadn't even thought about. It even created a simple spreadsheet I could use to track my earnings going forward. Way easier than the hours I spent stressing last year trying to figure out all this tax stuff on my own.

Since you're having trouble getting the right documentation from your employer, you might want to try calling the IRS directly to ask about your specific situation. I was in a similar boat with unreported babysitting income and needed some official guidance. The problem is actually GETTING THROUGH to someone at the IRS is basically impossible! I kept calling and hanging up after being on hold for 2+ hours. Then I found this service called Claimyr (https://claimyr.com) that got me connected to an actual IRS agent in under 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent I spoke with clarified that I could self-report without official forms and explained exactly which lines to use on my tax return. Completely worth it instead of stressing about doing it wrong.

Ok I have to admit I was totally wrong about Claimyr. After posting that skeptical comment, I decided to try it because I was desperate to talk to someone about a missing refund issue. I had already wasted like 4 hours on hold over multiple days. It actually worked exactly as advertised - they got me in line, then called me when my turn was coming up. Connected directly to an IRS agent in about 15 mins. The agent helped me track down my refund issue and it's now being processed correctly. I'm usually the first person to call out something that seems scammy, but this service is legit. Definitely using it again next time I need to deal with the IRS!

From my experience as a part-time sitter, you should just file a Schedule C as self-employed. Keep all your Zelle records as proof of income. You definitely don't need a 1099-NEC. But heads up - you should probably start setting aside money for quarterly estimated tax payments going forward! I got hit with a penalty last year for not doing that with my childcare income and it sucked. The IRS wants you to pay as you earn, not all at the end of the year.

One more thing to consider - if you're reporting this income as self-employment on Schedule C, you should look into legitimate business deductions to help offset your tax bill! Things like: - Portion of your phone bill if you use it for work - Any supplies you buy specifically for nannying - Mileage if you drive the kids anywhere - Any professional development related to childcare

I'm in a similar situation as a freelance tutor and had the same panic about tax filing! You absolutely can report your income without a 1099-NEC. I used my bank statements showing the Zelle deposits and created a simple spreadsheet tracking the dates and amounts. The key thing is to keep good records going forward. I started screenshotting every payment notification and keeping them in a folder on my phone. Also, don't feel bad about not discussing this earlier with your employer family - most people don't realize the tax implications of household help until it's time to file. One tip: if you do end up owing a significant amount, you can set up a payment plan with the IRS. It's way less stressful than trying to come up with everything at once!