Daycare.com Forum

Go Back   Daycare.com Forum > Daycare and Taxes > New To Babysitting Tax Question

Daycare and Taxes All things related to Taxes and running a Daycare post here. Topics of tax exemptions, forms, filings, tax write offs, IRS etc.

Thread: New To Babysitting Tax Question Reply to Thread
Your Username: Click here to log in
Random Question
Title:
  
Message:
Post Icons
You may choose an icon for your message from the following list:
 

Additional Options
Miscellaneous Options

Topic Review (Newest First)
06-08-2017 01:26 PM
TomCopeland
Quote:
Originally Posted by Unregistered View Post
I have a few questions. To start, we might start watching 3 kids from a single family (all siblings). We also have 3 children of our own (all in full time school). It will be 2-3 days a week and we will get paid for the service.

So, the first question is, do we need to claim this income when doing our taxes? I assume so.

The second question is, if we do claim the income, will it be required that we are licensed? I have read a lot about not needing a license if you watch 3 or less kids from a single family, but it wasn't clear if your own children count towards that 3.

I think I have read that you need to be licensed to write off expenses, but I am not as concerned about that. I am more concerned with any legal matters. I don't want to do anything that could get us in trouble.

Thanks in advance.
What BlackCat says is true. In addition, if you are operating illegally you can't claim house related expenses, but you can deduct other expenses. If you are licensed or exempt from licensing (according to your state rules) you can claim all allowable deductions. Beware of trying to operate illegally. You won't be able to get business liability insurance and you will be at greater risk if a child is injured. Your homeowners insurance may not cover you as well.
06-08-2017 12:35 PM
Blackcat31
Quote:
Originally Posted by Unregistered View Post
I have a few questions. To start, we might start watching 3 kids from a single family (all siblings). We also have 3 children of our own (all in full time school). It will be 2-3 days a week and we will get paid for the service.

So, the first question is, do we need to claim this income when doing our taxes? I assume so.

The second question is, if we do claim the income, will it be required that we are licensed? I have read a lot about not needing a license if you watch 3 or less kids from a single family, but it wasn't clear if your own children count towards that 3.

I think I have read that you need to be licensed to write off expenses, but I am not as concerned about that. I am more concerned with any legal matters. I don't want to do anything that could get us in trouble.

Thanks in advance.
Yes, you need to claim ALL income.
Whether licensed or not.

Providing care for only one family (regardless of the number of children in that one family) does not require a license in my state (MN) but you will need to check your state requirements to be sure if you do or don't need a license. Each state is different in counting the provider's own children and up to what age so that is also dependent on your state.

As far as taxes go, even if you are illegally providing care (which I am not advocating for) you should still always claim your income and pay taxes accordingly.

Here is the link to each state's licensing threshold:

http://www.daycare.com/states.html
06-08-2017 12:06 PM
babysitter This was my post. I didn't realize I wasn't logged in and it let me post as a guest.
06-08-2017 12:04 PM
Unregistered I have a few questions. To start, we might start watching 3 kids from a single family (all siblings). We also have 3 children of our own (all in full time school). It will be 2-3 days a week and we will get paid for the service.

So, the first question is, do we need to claim this income when doing our taxes? I assume so.

The second question is, if we do claim the income, will it be required that we are licensed? I have read a lot about not needing a license if you watch 3 or less kids from a single family, but it wasn't clear if your own children count towards that 3.

I think I have read that you need to be licensed to write off expenses, but I am not as concerned about that. I am more concerned with any legal matters. I don't want to do anything that could get us in trouble.

Thanks in advance.

Posting Rules
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -7. The time now is 11:47 AM.



Daycare.com         Find A Daycare         List Your Daycare         Toys & Products                 About Us

Daycare.com
Please read our Disclaimer before continuing.

Topics pertain mainly to the following States:

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming