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The-Bandas
New Member

I watch kids as an independent contractor for different churches. Do I report this income if the total is over $600 total, or over $600 total per church?

 
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Accepted Solutions
Hal_Al
Level 15

I watch kids as an independent contractor for different churches. Do I report this income if the total is over $600 total, or over $600 total per church?

All income is reportable, no matter how small the amount.

The "$600 rule" applies to whether the organization hiring you has to issue you a form 1099-Misc. So, that's $600 per church.

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6 Replies
Carl
Level 15

I watch kids as an independent contractor for different churches. Do I report this income if the total is over $600 total, or over $600 total per church?

The earnings don't matter. If you are paid $1 for your services as an independent contractor, it's self-employment income that gets reported on SCH C as a part of your personal 1040 tax return.
What does matter here is *where* you provide this daycare. In your home? Or somewhere else?
The-Bandas
New Member

I watch kids as an independent contractor for different churches. Do I report this income if the total is over $600 total, or over $600 total per church?

At different churches.
Carl
Level 15

I watch kids as an independent contractor for different churches. Do I report this income if the total is over $600 total, or over $600 total per church?

Since you do not provide the care in your own home, it's highly probable you are a W-2 employee of those who pay you, and it's possible no one has a choice in this.
The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work, not what will be done and how it will be done. Small businesses should consider all evidence of the degree of control and independence in the employer/worker relationship. Whether a worker is an independent contractor or employee depends on the facts in each situation.
For an understanding of this, see <a rel="nofollow" target="_blank" href="https://www.irs.gov/newsroom/understanding-employee-vs-contractor-designation">https://www.irs.gov/n...>
You may also need to make those who pay you aware of this also.
Hal_Al
Level 15

I watch kids as an independent contractor for different churches. Do I report this income if the total is over $600 total, or over $600 total per church?

If you do not get a W-2 for this work, you will have to report it  as income some other way and pay your FICA (social security and medicare ) tax. There are two ways to do this:
1. The simple way: you report it as self employment income.
2. You make a big fuss and turn your "employers" over to the IRS for not treating you as an employee. If you want to take this route, reply back  for detailed instructions. You will still have to pay the employee share of FICA.

You apparently  already agreed to be treated as an independent contractor, up front  ("I watch kids as an independent contractor"). The fact that you work for multiple churches supports  the contractor classification (but is not the only determinant).
Carl
Level 15

I watch kids as an independent contractor for different churches. Do I report this income if the total is over $600 total, or over $600 total per church?

He may have agreed. But I'm looking at that "level of control" thing since the daycare is not provided in the OPs house, or in a facility the OP has control over (such as rented business space for this endeavor.)
Hal_Al
Level 15

I watch kids as an independent contractor for different churches. Do I report this income if the total is over $600 total, or over $600 total per church?

All income is reportable, no matter how small the amount.

The "$600 rule" applies to whether the organization hiring you has to issue you a form 1099-Misc. So, that's $600 per church.

View solution in original post

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