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I babysit for a family member. It's not for a business or anything like that.
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You will get a form W-2 for your normal job. You will enter that as wages.
The IRS considers undocumented cash income (no W-2 or 1099-MISC), for work performed, to be self employment income. Enter that, separately, at "Business Income & Expenses" and TurboTax (TT) will complete Schedule C or C-EZ for you and allow you to deduct any expenses associated with this income. You'll also have to pay self employment tax (social security) on any profits greater than $400*.
You do not provide any special documentation for the baby sitting income, with your tax forms. The schedule C covers that. However, if are using this income to claim the earned income Credit (EIC), it's a good idea to keep records of the income, in case of an audit. records of bank deposits are particularly helpful.
*If you babysit in the customer's home, instead of yours, and the amount you were paid for the whole year was less than $1900, there is a way to avoid the self employment tax. But, you will also not get credit for these wages with the Social Security Administration, for future benefits. Comment back for alternate instructions
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