UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next
Author: WayStar Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76421  
Subject: Re: Two questions for the board... Date: 2/15/2002 1:32 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
As for question #2...

Disclaimer: please get confirmation on all of this, I'm only speaking from what I've observed as a part-time tax preparer in a town where babysitting is a *very* common form of SE.

Most do it as SE. Nothing is withheld along the way, it's up to the sitter/nanny-type to report the income and pay the taxes (most don't pay quarterly and get stuck with it at the end of the year, but if it were me, I'd pay quarterly).

The person whose kids are getting watched can deduct the expenses to get a Child and Dependent Care Credit. That causes trouble for sitters who don't report the income. The IRS doesn't seem to care if people are related, just so long as the reported $number$ match up.

If any of the sitting/nannying is done in the home of the sitter/nanny, many expenses are deductable to offset the taxes on that income.

On piece of advice, person-to-person: if she decides to go the SE route, (which does seem to make more sense) then she may want to get herself an Employer Identification Number (EIN) so she won't have to use her SSN on all of the SE related materials.

Hope this helps,
WayStar
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement