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January 2012 Moms
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Tax experts please?? :)

bigbearbigbear
in January 2012 Moms

If a person is watching one child out of their apartment and is getting paid for it, obviously the income needs to be reported on the taxes.

But can you report is as other income or do you need to get a tax ID? Anybody know more about this? I looked online but couldn't find anything specifically for this.

 

TIA!

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Re: Tax experts please?? :)

  • baloneydiscbaloneydisc member

    This can be done as a 1099 under the person's SSN.  A 1099 "employee" does not have any taxes taken out by the employer.  I don't think an individual can generate 1099s though, I believe only businesses can do this, but I'm not positive on that. 

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  • fyrefairiefyrefairie member
    I second the 1099 but am not sure on what a single person (versus business) would need to do...consult a tax professional.

     

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  • LadyAphLadyAph

    This is most likely not a 1099 situation.  A 1099 is for a contract employee.  An individual that is running a daycare (which you would be) is a sole proprietorship and and would have to file a schedule C.

    Unless you're getting paid cash, in which case most people don't report it (though they should).  If the client wants to claim dependent care benefits though, they need to pay an authorized care provider and get receipts.

    You really need to talk to a tax professional in person and review your specific situation with them. 

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  • bigbearbigbear
    Thanks ladies!!
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