You have to go to your job in order to meet the growing expenses which increase day by day. If you are single or only just married, it is quite fine and easily manageable as well to do your job. However, the real problem starts when you have children and have to go to your job as well. You definitely need to hire a babysitter to take care of your children while you are at work. But the question is about reporting the babysitting income, that do the babysitters have to report income on their taxes or not?
If we talk about hiring babysitters, it is some extra pocket money for them. As for our own part, it can be a bit of relaxation and a peaceful environment at work because we know that there is someone who is taking care of our child out there and meeting his/her needs.
Is it true that the babysitters report their income?
If we look at the IRS, according to them every babysitter has to report his/her income when they go to pay their taxes if they earn more than 400 dollars as their income. A babysitter is an employee of the household so basically if you have paid him two thousand dollars or more than this amount in the year 2017 then you have to balance the employment taxes because that will make it sure that the babysitter is an employee until and unless the babysitter is of lesser age than 18.
Are babysitters required to file taxes?
This is another common question which comes around and which is whether the babysitters are required to file taxes or not. In order for this question to be solved, you need to consider a few things so that you can find the answer to this problem.
The most common answer to this is that being a dependent you have to necessarily file the taxes if your income is more than 6350 dollars. You also are required to file taxes if you are self employed and have earned more than 400 dollars or if you have invested somewhere from where you earn more than a thousand dollars.
Apart from this, if you are not a dependent and single and you earn 10400 dollars or if married and you earn 20800 dollars then there is a definite requirement for you to file the taxes. You might not be too excited or too happy at the thought of filing your taxes but you must keep in mind that there are many advantages for you in this as well.
With the help of tax deductions you get from the babysitter, you can use this money for your future commitments. You can easily get a refund from the taxes that you have paid from your own job paychecks.
What do you think about the side income?
For all those who have hired babysitters in this year, they all must have earned some extra money for sure. You can get great benefits and some excellent ways of tax savings from the flexible spending account and baby and dependent care tax credit. This can save up a lot of money for you as well as make the future of your kids to be extremely bright.
What about the tax deductions?
You should not worry about the tax rules because they are not that hard. In fact, the turbotax company will just ask you a few questions, and then provide you with the tax deductions as well as some excellent credit deductions of which you are eligible on the basis of your answers.
Apart from that, anything that you buy for the babysitters use while he is at your place to take care of the baby, will come under the tax deductible statement. This can be anything from a chair to a mobile phone or any other item bought specifically for the babysitter.
However, an item which you had already bought before the babysitter started the job of babysitting at your place for the baby will not be tax deductible. This is because this particular item was already bought before the babysitter started the job.
