Self Employed Babysitter

[Playtime Shelly]

Good Morning,

First let me say I am thrilled that I have found you! I have more questions than I know what to do with. I live in CO and am not a licensed daycare. I babysit for 2 children along with my own son. I am planning on claiming the income earned so that my DcParents can take the deduction on their taxes.

My question is, do I need to do this so that they can claim the deduction? I am confused about how the taxes will work since I am not licensed as a daycare but am simply a babysitter. I have been keeping track of the things I have purchased in order to keep my kids entertained, clean and safe. Am I entitled to file as self employed? Can I use the T/S% on my apartment?

Thanks so much!
-M

[itlw8]

yes

yes you are a business even if you are not licensed yes you need to claim the income, yes you may claim the expenses Yes you may claim t/s percentage

and Yes you need us. Get The record keeping book it is full of information you need. The contract book is wonderful also.

[Lyss]

yes

yes you are a business even if you are not licensed yes you need to claim the income, yes you may claim the expenses Yes you may claim t/s percentage

and Yes you need us. Get The record keeping book it is full of information you need. The contract book is wonderful also.

plus you can claim food you serve and so much more!

And get an EIN, don't give out your SSN! Its free and you can do it online

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Employer-ID-Numbers-(EINs)-

[Unregistered]

Thank you guys so much! Do I need to register for a fictitious name or LLC to get an EIN? So glad I found you!

[Playtime Shelly]

Thank you guys so much! Do I need to register for a fictitious name or LLC to get an EIN? So glad I found you!

[MarinaVanessa]

Thank you guys so much! Do I need to register for a fictitious name or LLC to get an EIN? So glad I found you!

No, not at all. You can do it online or by phone. Both ways are easy and you get your EIN right away.

[Playtime Shelly]

That's great I am digging into it now while my babies sleep

You guys rock!

[MyAngels]

There are some expenses that you can only claim if you are either licened or legally unlicensed. I don't know the rules in your state, so definitely check that out.

[TomCopeland]

Unlicensed

Good Morning,

First let me say I am thrilled that I have found you! I have more questions than I know what to do with. I live in CO and am not a licensed daycare. I babysit for 2 children along with my own son. I am planning on claiming the income earned so that my DcParents can take the deduction on their taxes.

My question is, do I need to do this so that they can claim the deduction? I am confused about how the taxes will work since I am not licensed as a daycare but am simply a babysitter. I have been keeping track of the things I have purchased in order to keep my kids entertained, clean and safe. Am I entitled to file as self employed? Can I use the T/S% on my apartment?

Thanks so much!
-M

If you are license exempt (meaning you are not required to be licensed) then you can claim all of the same expenses as a licensed provider. This includes claiming the T/S% of your house expenses (property tax, mortgage interest, house insurance, house repairs, utilities, house depreciation).

[inshakhan]

Good Morning,

First let me say I am thrilled that I have found you! I have more questions than I know what to do with. I live in CO and am not a licensed daycare. I babysit for 2 children along with my own son. I am planning on claiming the income earned so that my DcParents can take the deduction on their taxes.

My question is, do I need to do this so that they can claim the deduction? I am confused about how the taxes will work since I am not licensed as a daycare but am simply a babysitter. I have been keeping track of the things I have purchased in order to keep my kids entertained, clean and safe. Am I entitled to file as self employed? Can I use the T/S% on my apartment?

Thanks so much!
-M

In Colorado, you have to be licensed if you care for 2 or more children. And the IRS does not allow the Form 8829 home deductions if you're not operating according to state licensing laws. So you can claim all deductions *except* the Form 8829 home deductions (T/S % on your apartment). For an apartment, this would basically be your rent and utilities - you will not be able to get the deduction for those. But you can still calculate your T/S % to figure out what percentage to deduct of shared expenses like cleaning supplies, kitchen supplies, etc.