Do Babysitters Have To Report Their Income on Taxes?

Income and Investments Beautiful happy blonde woman holding up a baby girl and lying on the floor.

Working from home has been a wonderful way to have more time with our daughters. The relative flexibility of my schedule allows me to earn money and avoid paying for daycare.

However, there are times when I do need some assistance and I have to hire a babysitter. The good news is that there are some sweet and hardworking teens in the area. Having someone watch over our toddler and our little girl makes it much easier to knock out the bigger, more intensive projects.

For our babysitters, it’s a little extra money on the side and for us, it gives peace of mind that our kids are in good hands, a win-win. However, now that it’s tax time, the question stands – do our babysitters need to pay taxes on their income?

Do Babysitters Have To Report Their Income on Taxes?

According to the IRS, babysitters do need to report their income when filing their taxes if they earned more than $400 (net income) for their work. This income is basically from self-employment so you don’t have to issue a 1099 if you pay a babysitter unless they earned $600 or more.

A babysitter is considered a household employee, and if you paid $2,000 or more in 2017 ($2,100 in 2018) you would have to withhold employment taxes since they would qualify as an employee, unless they are under 18 then there are exceptions to this rule.

Do Our Babysitters Need to File Taxes?

Another question that comes up with earning money from side jobs, especially with teenagers (and their parents), is whether or not to file taxes on that income. There are some factors you need to consider which can help you find the right solution for your situation. The IRS has laid out thresholds for those required to file their taxes.

In general, if you’re a dependent of someone else, you generally need to file taxes if you’ve earned more than $6,350 from your work or you’ve earned over $400 through self-employment, or your investment income is greater than $1,050.

If you’re not a dependent and earn $10,400 or more if you’re single and $20,800 or more married filing jointly then you will need to file your taxes. While you may not be thrilled with filing taxes, there can be so benefits for you. You may be able to get a tax refund from what you had withheld from your day job paychecks.

Thoughts on A Side Income?

How many of you have hired babysitters this year? How many of you earn extra money through side jobs like babysitting?

Don’t worry about knowing these tax rules. TurboTax will ask you simple questions and give you the tax deductions and credits you’re eligible for based on your answers. If you still have questions, you can connect live via one-way video to a TurboTax Live CPA or Enrolled Agent to get your tax questions answered. A TurboTax Live CPA or Enrolled Agent can also review, sign, and file your tax return.

Comments (1) Leave your comment

  1. If someone receive more then $2,100 in 2018 for watching a friends baby, not in the parents house but in their own, can they be considered an independent contractor and report it as self-employment?

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