I’m tossing around ideas to pull some income in. Day care is very low on my list, but am getting some info any how. I was wondering about watching kids in the summer that normally go to school. Would this be treated like daycare where I would report taxes or like babysitting where I didn’t?
Are you talking about caring for someone else’s children in your home?
That would be a business service that you are providing for others. You would be expected to report the income on your tax return. You would probably be expected to come up with social security, medicare, etc in addition to income taxes.
If you care for children of more than one family you might be expected to apply for a daycare license.
Since this would be in your home, your clients would not be required to report the money paid to you but they might want to do so in order to optain a childcare credit or to obtain reimbursement from a pre-tax withholding account for childcare.
My SIL started a preschool at her Protestant church as an alternative to doing fulltime babysitting. It was a nonprofit from which she drew a salary.
you should be reporting all income if it exceeds IRS guidelines for any given quarter. best find out the local regulations in your area for any kind of home care.
Hi, every one this site is more useful to me regarding daycare or babysitting, am earlierly seen one of the other site is more useful to us,If you want to start a day care business, one of the first things you need to do is to find out about daycare regulations for your state. You can start by contacting your state daycare licensing agency who will direct you to your local agency. When you inquire about daycare regulations.
Talk to a tax professional -
If the parents are going to claim the payment for income tax purposes, you will need to report the amounts no matter what the service is called
A fact we all need to take into consideration is that once you make a certain dollar amount at any service be it called “day care” or “babysitting” you need to report it on taxes. Generally speaking a teen who babysits shouldn’t be making so much that they meet this requirement. Taking care of school-age children during the summer for pay will indeed bring your income to that point.
Check to see also if that income you make will put you into the next tax bracket - I don’t “work” because the government actually takes most of my income in taxes due to my husband’s income. I do sell Avon and can at times actually show a profit doing so! I don’t make enough though to pay Social Security on it or increase our combined incomes so much as to have to pay taxes on it.