Babysitting income is usually self employment income. The income and expenses must be reported on Schedule C of IRS Form 1040. The IRS requires you to file if you had at least $400 in earnings from self-employment.
To enter your babysitting income into TurboTax follow these instructions:
- Select Search in the top right hand side of your screen,
- Enter Schedule C Income,
- Select Go to Schedule C,
- Answer the questions in the section
- Continue through all the screens and you will be asked about your expenses that you can claim against your income.
If you're caring for a relative, and you don't have a profit motive; rather you're doing it to help the relative, you wouldn't be subject to self-employment tax. However, you would need to report the payments as taxable income on Form 1040, Line 21. While in TurboTax follow these steps:
- Select Search in the top right hand side of your screen,
- Enter 1099 Misc,
- Select Go to 1099 Misc,
- Answer the questions in the section
- Continue through all the screens,
- You will be asked Did this involve an intent to earn money?
- Answer, No, it didn't involve an intent to earn money.
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