where do I put household employee income on tax form?

 I am a grandmother & I babysit my grandchildren at their home.
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    You would enter your income on Schedule C (self employed), it is showing you are in the Free Edition, the Free Edition does not offer Schedule C, you will have to upgrade to a paid version, Basic or above.  See the following for information on how to upgrade within the program
    http://turbotax.intuit.com/support/iq/Upgrade-to-a-different-product/Can-I-switch-or-upgrade-to-a-hi...

     

    To enter Self Employment (Schedule C)

    - Federal Taxes

    - Wages & Income

    - Explore on My Own

    - under Business Items

    - Business Income and Expenses (Sch C) – click Start or Update

     

    You can use your name, SSN or if you have one use your Business name and EIN & use your own records for income & expenses.

     

    Self-Employed Individuals Tax Center http://www.irs.gov/businesses/small/selfemployed/index.html
    • Claiming the income as self-employment income on schedule C will require that you pay the SE (Self Employment) tax.

      Since you said that were a household employee working in your daughters home, I believe the parent exception for the employment tax (and W-2 requirement) would  apply and you can report the income as household employee income.

      But note: there is an exception to this under "Wages not counted." in Pub 926, That essentially says:

      If you were caring for a child under age 18 in their home AND the parent is EITHER divorced and not remarried, OR is a widow(er), OR has a spouse that is disabled and cannot care for the child(ren), THEN you would be subject to the employment tax.   If that does not apply, then yiu would not be subject to the employment tax and your daughter does not need to issue a W-2 no matter how much you were paid.

      See pub 926 for information on this.
      http://www.irs.gov/publications/p926/ar02.html#en_US_2013_publink100086732

      I know the screen says LESS then $1,800, but that is the normal situation.  Yours is a very unusual case, so just ignore the $1,800 comments.  It will accept any amount.
       
      Federal Taxes,
      Wages & Income
      Explore on My Own,
      Less Common Income,
      Miscellaneous Income,
      Other Income Not Already Reported On a W-2 ,
      Wages Earned as a Household Employee”.
       
      The income will be added to your 1040 line 7 income with "W-2 HSH xxxx" written next to it.
    • I just got off the phone with my tax advocate and filed the exact same way with the income reported as HSH next to it and she told me that I couldn't file that way and she's never heard of a return being filed this way, and that I needed to send to her a corrected return as self-employed. Remind you I filed the same way last year with no problem and got my refund!!!!
    • You need to get another tax advocate, who has a clue about the IRS rules or refer her to the form 1040 instructions.

      2012 1040 form instructions, page 20
      http://www.irs.gov/pub/irs-pdf/i1040gi.pdf
      Quote

      "Line 7
      Wages, Salaries, Tips, etc.
      Enter the total of your wages, salaries,
      tips, etc. If a joint return, also include
      your spouse's income. For most people,
      the amount to enter on this line should
      be shown in box 1 of their Form(s) W-2.
      But the following types of income must
      also be included in the total on line 7.

      All wages received as a household
      employee for which you did not receive
      a Form W-2 because an employer paid
      you less than $1,800 in 2012. Also, enter
      “HSH” and the total amount not reported
      on Form(s) W-2 on the dotted line
      next to line 7."
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    You must upgrade from TT Free to access Schedule C for self-employment income.
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