Filing taxes as a babysitter

[jmelynn926]

Is there a way to set up online to pay into federal, social security and whatever else is needed, if I am self employed and watch 1 child in my home. in NJ?  I started in March, I receive cash.  I do not want to owe a lot of money come January.. However I am a single mom of 3, and do get earned income credit for them. Can I pay in weekly or monthly?  Its hard to estimate, each week is sometimes different..  Thanks

[Critter]

What is your annual income expected to be from sitting and other sources ?

[jmelynn926]

approximately for this year $11,000.  thats with me waitressing as well on weekend, but that is already paid in.   That number could change due to more or less hours worked at home

[Critter]

At that income level with 3 kids under the age of 17 you do not need to pay estimated taxes ... the CTC & EIC  credits will more than cover any taxes you will owe.

[jmelynn926]

Ok, so does that mean I do not have to pay into to anything during the year? Does this include social security and the other things you see taking out of a paycheck?  Will everything be taking out when I do my taxes?   I am really new and clueless to all this, but really want to do things the right way.

[jmelynn926]

If I want the most back on my tax return can I pay a little each week or month to the IRS? Social Security? State?

[Critter]

Why would you want to give the IRS money from your pocket to hold until the end of the year just to give it back to you ?   They don't pay any interest on this free loan of your money so why do it ?

At your income level the kid credits will pay off any taxes due AND give you a refund so wait until the end of the year to file the return... no estimated payments are needed.

[SweetieJean]

Do you live with another adult who might be claiming the children as their dependents?

[jmelynn926]

No I have court order that states they are mine to claim.  Your right about paying in, I just always seen incomtax as a savings account.  That is my time to pay off bills and such.   Thank you for all your help, again just want to do things the correct way and not get myself in any trouble.

[SweetieJean]

The IRS does not care about court orders.  However. I was actually asking if, say, you live with your parents,, and that Grandma or Grandpa might be supporting all of you.

[jmelynn926]

I live alone with my children, my boyfriend is here but lives at another address.  We are currently buying this house, but again he lives at another location.  From what Im told I can claim the taxes as well paid on this house.

[SweetieJean]

The person who owns the home and actually makes the mortgage interest and property tax payments is the one who can deduct them.  However, with such a low income, it may not matter.

[jmelynn926]

Its in both of our names, our mortgage is through a private investor..  He makes the tax payments though.  I was under the understanding I could claim the yearly taxes?

[jmelynn926]

I want to thank you both for all this information.  Was a big help and eases my mind that Im ok with what Im doing.

[SweetieJean]

Since you are not married, only BF can claim the taxes.