Is this deductible? Is this income?

jabaker1428 — Tue, 04 Jun 2019 20:14:17 GMT

My grand daughter pays us $500.00 a mo. to take care of our great grandson. this is for food, dippers, books, clothes, and other supplies. Is this INCOME ? Is any of this Deductible ?

Yes, unfortunately this does qualify as reportable income...

PatriciaV — Tue, 04 Jun 2019 20:14:19 GMT

Yes, unfortunately this does qualify as reportable income, as it amounts to $6,000 for the year. However, you can claim all the expenses related to the income, so you'll only be taxed on the net (income less expenses).

Since this was or occasional income with no profit motive, you may report this as a hobby or "Other Income" on your personal tax return. You may include expenses up to the amount of income, but you cannot report a loss on a hobby. TurboTax Deluxe online and above will report hobby income & expenses.

This post may help you decide which is most appropriate: What's the difference between self-employment income and other income? If you decided this should be a for-profit business, you would report the income and expenses on Schedule C, available in TurboTax Self-Employed online or TurboTax Home & Business for desktop.

To find this section in TurboTax Online, open your return, then go to My Account >> Tools >> Topic Search. Type in "hobby income, loss", then click the topic in the list and GO to go directly to the start of this section. Follow the prompts to enter your hobby income and expenses.

topic Is this deductible? Is this income? in Deductions & credits

Is this deductible? Is this income?

Yes, unfortunately this does qualify as reportable income...