I was wondering when babysitting enters the taxable range. When do parents have to file for having paid a sitter and when do sitters have to file that they have a certain income from babysitting?

As babysitters generally make less than $400 in a calendar quarter, they do not have to be reported in your yearly taxes, nor are they required to fill out W-9 forms for declare their earnings to the IRS.

If a babysitter is making over $400 in a calendar quarter (averages out to over $130 a month) and sitting for you in your home, you should treat her as an employee.  This means that you should issue a W-9 form and get a copy of the completed form for your files.  Giving this form to your accountant at the end of the year will ensure that the sitter is informed about the W-9 form and her earnings, and remind her that you will be reporting withheld federal income.... Read More

Hi all!

Just wanted to give you an update about sitting/nanny taxes, since 2009 is here and tax season will be upon us before we know it.

Sittercity.com has a great article out right now with everything you need to know about paying taxes on your in-home child care provider. Check it out:

http://babysitters.sittercity.com/article/nannytaxes.html

The gist:

If you paid your nanny $1,600 or more annually in 2008, you must withhold and pay Social Security and Me.... Read More