Babysitter Lying On The Floor And Holding Up A Baby Girl
Do Babysitters Have To Report Their Income on Taxes?

Do Babysitters Have To Report Their Income on Taxes?

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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 $400 or more (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 $2,300 or more in 2021 ($2,400 for 2022) 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 $12,550 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 $12,550 or more if you’re single and $25,100 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 about you 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 tax expert, with an average 12 years of experience to get help along the way, or you can just fully hand over your taxes off to a tax expert with TurboTax Live Full Service. TurboTax Live tax experts are available in English and Spanish, year-round. 

Elle Martinez
Elle Martinez

Written by Elle Martinez

Elle helps families at Couple Money achieve financial freedom by sharing tips for reducing debt, increase income, and building net worth. Learn how to live on one income and have fun with the second. More from Elle Martinez

2 responses to “Do Babysitters Have To Report Their Income on Taxes?”

  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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