If i cared for someone elses child and received cash for it, how would I claim it?

[MinhT1]

Your child care (or babysitting) income is considered by the IRS as self-employed income.

In TurboTax, you report this self-employed income under Other self-employed income. You can deduct related expenses from this income.

To do this, you need to use TurboTax Self-Employed (Online) or TurboTax Home & Business (CD/Download).

• In TurboTax, under business income, just under Type of Income, click on Add Income for this work
• On the next page, click on the radio button next to Other Self-employed Income
• Click Continue to enter your income received in cash, checks or bank transfers.

[Kinslowrachel5656]

Do I have to claim it? What's the income for that work to where I don't have to claim it?

[JohnW152]

Yes, you have to report it, if the gross amount of your self-employment income is more than $400. 

Please see the TurboTax Help article Do I need to file a federal return this year? for guidance.

It’s also worth pointing out that the person who paid you for child care may want to claim the Child and Dependent Care Credit, in which case your information would be provided to the IRS, and they’d be on the lookout to make sure you reported the income.

[xmasbaby0]

If you made even $400 in self-employment income you are required to enter it on a tax return.   And....when someone pays you to watch their child while they work, they want to get the childcare credit on their own tax return.  So they report the amount they paid you and your Social Security number or Tax ID to the IRS.   The IRS matches that up with the amount you report on your tax return.

[Kinslowrachel5656]

Thank you so much. They did report it. I was needing to know how I report it. Thank you for your help

[VolvoGirl]

That is self employment income.

To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax. You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version. Or any of the Desktop programs. But you will get the most help in the Home & Business version.

How to enter income from Self Employment
https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

You need to report all your income even if you don't get a 1099NEC or 1099Misc. You use your own records. You are considered self employed and have to fill out a schedule C for business income. You use your own name, address and ssn or business name and EIN if you have one. You should say you use the Cash Accounting Method and all income is At Risk.

After it asks if you received any 1099NEC it will ask if you had any income not reported on a 1099NEC. You should be keeping your own records. Just go through the interview and answer the questions. Then you will enter your expenses.

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment. You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire. You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040. The SE tax is already included in your tax due or reduced your refund. The SE tax is in addition to your regular income tax on the net profit.

Here is some IRS reading material……
IRS information on Self Employment
https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center

1040 Schedule C Instructions
https://www.irs.gov/pub/irs-pdf/i1040sc.pdf

Publication 535 Business Expenses
https://www.irs.gov/pub/irs-pdf/p535.pdf