Babysitting Tax Guide

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Category : Babysitting

Note: I am not a tax adviser. This guide provides great information about taxes and babysitting and it your responsibility to determine the requirements for your situation… that’s just life.

Parents want to know if a Babysitter is an employee and they need to report the wages they pay. Babysitters want to know if they have to report their income to the IRS at tax time. This article gives generic guidance for parents and sitters in the United States.

This article answers the following questions:

  1. Are babysitters household employees?
  2. Do parents need to report payments to babysitters to the state or IRS?
  3. Do babysitters need to report income to the IRS?

Are Babysitters Household Employees?

The short answer is: Yes!

For documentation from the IRS, see this household employee tax topic.

Babysitters are minors who provide their services at a time and place that you specify using techniques and tools and supplies that you specify. This makes them an employee.

Depending on your situation, you may not need to withhold taxes or pay minimum wage. For more information the Department of Labor has a Youth Labor Guide you can refer to.

Do I Have To Report The Money I Pay a Babysitter To The State or IRS?

To be within the law, you must report the wages you pay household employees to your state and to the IRS and you need to provide proper documentation to your employee. You do not need to withhold or pay social security or medicare taxes if the person is under 21. Check your local state laws for additional rules you need to follow.

Do Babysitters Need to Report Income on Taxes?

To be within the law, you must report the money you earn as a babysitter to the IRS on your taxes. You may or may not need to pay any taxes depending on your situation. There have also been times when by reporting your income you actually qualified for tax credits which resulted in a “refund” from the IRS even though you didn’t have to pay any taxes during the year.

What do I do if I have questions?

Get in touch with your state employment agency to learn more about the requirements in your state. You can also consult a CPA in your state to learn more about the requirements locally as well as for IRS reporting.

How Do I Get Started As A Babysitter?

MyFirstPaycheck has a great set of training for becoming a Babysitter. There are articles, worksheets, videos, and an online training course to get you started.

MyFirstPaycheck Babysitting Guide