QUESTION
Is babysitting money considered wages or self-employment?
Asked on Jan 14th, 2014 on Taxation - Michigan
More details to this question:
I receive social security and also receive $100.00 per week for babysitting my son's kids. Is this considered wages or self-employment? I do this is my home.
4 ANSWERS
Self employ, report on Schedule C, and deduct expenses.
Answered on Jan 17th, 2014 at 4:10 AM
Self employment.
Answered on Jan 17th, 2014 at 3:48 AM
Probate Attorney serving St. Louis, MO
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Edward L. Armstrong, P.C.
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The money that your son pays you would be self-employment income. If the net amount of this income after any expenses incurred by you in performing your babysitting duties was more than $400 in a given year you would have to pay self-employment tax on that amount. The amount of that tax is somewhere around 15.3%. Self employment income is reported on Schedule C with IRS Form 1040.the information contained is strictly prohibited.
Answered on Jan 16th, 2014 at 9:57 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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They are self-employment unless you have an employment agreement with you son.
Answered on Jan 16th, 2014 at 8:01 PM