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I babysit last year for a family member, I don't own a daycare or anything just watch the baby sometime. What should I file this information under?

 
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2 Replies
RayW7
Expert Alumni

I babysit last year for a family member, I don't own a daycare or anything just watch the baby sometime. What should I file this information under?

This income is correctly reported as self-employment income. Report this income by following these steps.

  • Click on Federal Taxes at the top of the screen.
  • Click on Wages & Income across the top of the screen.
  • Under How do you want to enter your income? click on I’ll choose what I work on.
  • Under Your 2020 Income Summary, go down to Business Items.
  • Click to the right of Business Income and Expenses.
  • At the screen Did you have any income and expenses for a business in 2020? click Yes.

TurboTax will ask questions and guide you in establishing the business and reporting business income and expenses.

 

Carl
Level 15

I babysit last year for a family member, I don't own a daycare or anything just watch the baby sometime. What should I file this information under?

Understand that you don't have to "own" anything business related, in order for certain types of income to be considered business income, or self-employment income. 

Generally, if you provided the child care in your own home then as far as the IRS is concerned, you earned that money while self-employed and "in business" for yourself. All business income and expenses are reported on SCH C as a part of your personal 1040 tax return.

If you provided the child care in the home of the person who paid you, then you "Might" be considered a household employee. In that case, the person who paid you would be required to issue you a W-2 and "might" also be required to withhold taxes from what they pay you too. To explain this in the simplest way I can come up with, you are a household employee if you are hired by someone to do household work (which can include providing child care) and that person who pays you  can control not only what work is done, but how it is done.

 

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