Help with taxes

[Hanpro]

Hello! 
I started a new job as a nanny in August 2021. Should I claim that I worked from August to the new year? Or do I just claim it starting next year sense I won’t have earned enough money to take taxes out? What is the minimum total wage that you have to claim it? 

[Sunny_Tax_Expert]

Hi Hanpro,

You should report any income from August of this year through year end on your 2021 tax return.  

As a general rule, unless the income is considered a gift, you need to report all income that is subject to US taxation on your tax return.

[xmasbaby0]

You will file a 2021 tax return in early 2022 for the income you received in 2021.  Your employer should provide you with a W-2 that shows how much you were paid in 2021 if you are a "household employee."

You will not owe tax if you earn less than the standard deduction  (if you are single that is $12,550)   but if tax is withheld you will want to file a tax return to seek a refund, or possibly to seek the 3rd stimulus check if you have not yet received it and are eligible for it.

[Hanpro]

When do I have to start paying money back for taxes? 

[xmasbaby0]

@Hanpro Please explain what money you are asking about "paying back?"   What do you mean?   Your question is not clear.

[Hanpro]

How do I know how much money to take out to pay taxes 

[DoninGA]

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@Hanpro wrote:

How do I know how much money to take out to pay taxes 

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If you are an employee who will receive a W-2 then you have to give your employer a W-4 for taxes to be withheld from your wages.

Use this IRS website for a withholding calculator - https://www.irs.gov/individuals/tax-withholding-estimator

[Hanpro]

My employer is just a family, they cannot give me a W2

[xmasbaby0]

@Hanpro Please clarify your situation for us.   You say you are a nanny.   Do you go to the children's home, or do they come to your home?   Do you live in or just go there to take care of the children?    How are you being paid?   Have you had a discussion with the parent who is paying you as to whether they will be issuing a W-2 to you in January?  If you have not had that "talk" do it right away.  

If you are actually working as a babysitter in your own home then you are self-employed and will be subject to self-employment tax if you have earned even $400.   

[Hanpro]

The child is brought to me 5 days a week 8-430. I also watch another child twice a week of as needed at my house. Would this be considered babysitting? I was advised earlier in the year to say self employed 

[xmasbaby0]

@Hanpro You are self-employed.   You are NOT a household employee since you do not go to the home of the children you are caring for.     You need to be keeping good records of anything you spend for food, toys, equipment,  craft supplies, etc. to use with the children you are caring for.

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

https://ttlc.intuit.com/questions/2903027-how-do-i-report-income-from-self-employment

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

[Hanpro]

Yes I have kept all of my receipts from starting work. So I say self employed and then what do I do fromt there?  Does this mean that the families can’t claim they pay child care through me? 

[xmasbaby0]

@Hanpro The people who pay you to babysit are going to claim the money they paid you on their own tax returns.   If they are paying you to take care of their children so they can work, they enter the amount they paid to you for the child and dependent care credit on their own tax return.  They will want your Social Security number or your Tax ID, because they have to use it to get the tax credit.   The amount they pay you and the amount you enter on your own tax return will be cross checked by the IRS.  If you do not want to give out your Social Security number then get a Tax ID number from the IRS.

https://www.irs.gov/individuals/international-taxpayers/taxpayer-identification-numbers-tin

[Hanpro]

Thankyou so much this was very helpful!! Is there anything else you think I need to know regarding this?? 

[xmasbaby0]

Please read all of those links already provided to you VERY thoroughly.  Since you did not start this babysitting job until late in the year in 2021, you will not need to file quarterly tax for 2021, but if you continue to babysit in 2022 you should consider sending in quarterly estimated tax payments.

https://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs