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The TurboTax Blog > Income and Investments > Babysitter Taxes (Who Owes It & How to Pay)

Babysitter Taxes (Who Owes It & How to Pay)

Income and Investments Babysitter Lying On The Floor And Holding Up A Baby Girl

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 child care.

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 supplemental income 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 $400 or more (net income) for their work. This income is basically from self-employment so you don’t have to issue Form 1099 if you pay a babysitter unless they earned $600 or more.

A babysitter is considered a household worker/employee, and if you paid $2,100 or more in 2019 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.

In general, if you’re a dependent of someone else, you generally need to file if you’ve earned more than $12,200 from your work or you’ve earned net income of $400 or more through self-employment, or your investment income is greater than $1,100.

If you’re not a dependent and earn $12,200 or more if you’re single and $24,400 or more married filing jointly then you will need to file. While you may not be thrilled with filing taxes, there can be some benefits for you. You may be able to get a tax refund from what you had withheld from your day job paychecks as well as additional tax benefits.

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 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, with an average 15 years-experience to get your tax questions answered. TurboTax Live CPAs and  Enrolled Agents are available in English and Spanish, year-round and can also review, sign, and file your tax return.

Comments (2) Leave your comment

  1. Im single over 18 and have been working as a babysitter for 2+ years will I get in trouble for not filing? If yes how should I file?

  2. 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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