Parent Wants To Claim Income To Babysitter. Does Babysitter Pay Tax?

[DaisyMamma]

My little sister has the people she sat for last summer asking for her ss#
She is 21 and already filed long ago.
If she gives her ss# will she have to pay taxes on the income? She thought the income was tax free. They paid in cash.

[SignMeUp]

Maybe she could ask them if they paid the taxes on her income, since they were her employer.
If nothing else, they may rethink trying to attribute income to her.

[skybluepink02]

I was a private nanny for a lot of years. In the beginning, before I wised up and got legal, I had this same situation come up. Turns out, once the parents realized that they cannot legally hire a nanny/babysitter as an independent contractor, and have to pay their share of taxes too, they stop trying to claim it. They will have to pay 7.65% of her wages in taxes. She will be responsible for the other 7.65% if they follow through on claiming.

She cannot legally stop them from claiming it, as they can to it without her social, just her name, if she doesn't cooperate. But having her let them know the tax implications of filing might take care of the problem by itself.

In the future, she should know that it is to her benefit to get paid legally.

[Heidi]

I was a private nanny for a lot of years. In the beginning, before I wised up and got legal, I had this same situation come up. Turns out, once the parents realized that they cannot legally hire a nanny/babysitter as an independent contractor, and have to pay their share of taxes too, they stop trying to claim it. They will have to pay 7.65% of her wages in taxes. She will be responsible for the other 7.65% if they follow through on claiming.

She cannot legally stop them from claiming it, as they can to it without her social, just her name, if she doesn't cooperate. But having her let them know the tax implications of filing might take care of the problem by itself.

In the future, she should know that it is to her benefit to get paid legally.

[skybluepink02]

Also, the parents will be penalized for not taking taxes out all along. Have her find out if they plan to give her a w-2 or a 1099. If it's a 1099, they're trying to claim she's an independent contractor, which is illegal.

[DaisyMamma]

I was a private nanny for a lot of years. In the beginning, before I wised up and got legal, I had this same situation come up. Turns out, once the parents realized that they cannot legally hire a nanny/babysitter as an independent contractor, and have to pay their share of taxes too, they stop trying to claim it. They will have to pay 7.65% of her wages in taxes. She will be responsible for the other 7.65% if they follow through on claiming.

She cannot legally stop them from claiming it, as they can to it without her social, just her name, if she doesn't cooperate. But having her let them know the tax implications of filing might take care of the problem by itself.

In the future, she should know that it is to her benefit to get paid legally.

Also, the parents will be penalized for not taking taxes out all along. Have her find out if they plan to give her a w-2 or a 1099. If it's a 1099, they're trying to claim she's an independent contractor, which is illegal.

Thank you. Very helpful.

[itlw8]

Yes we owe income on all money we earn BUT For the parents to claim the money paid to her as a babysitter / nanny they need to go back an fill out all the needed forms as her employers and pay the withholding.

If I was her I would NOT give them the info but instead I am sorry I assumed you were paying cash under the table because you did not have me fill out any forms when I started. You do know you will owe the withholding as the employer and penalties for not paying them quarterly. I worked in your home as an employee.

[coolconfidentme]

Is your sister in school? She could be tax exempted. She also doesn't have to file if she makes under a certain dollar amount too.

[Blackcat31]

My little sister has the people she sat for last summer asking for her ss#
She is 21 and already filed long ago.
If she gives her ss# will she have to pay taxes on the income? She thought the income was tax free. They paid in cash.

Why would she think income paid to her was tax free? Doesn't matter if it's cash or checks...she earned an income so she would owe taxes on that income.

I would contact Tom Copeland and ask him. I would post this in the tax area of the forum and he will see it and reply.

I was a private nanny for a lot of years. In the beginning, before I wised up and got legal, I had this same situation come up. Turns out, once the parents realized that they cannot legally hire a nanny/babysitter as an independent contractor, and have to pay their share of taxes too, they stop trying to claim it. They will have to pay 7.65% of her wages in taxes. She will be responsible for the other 7.65% if they follow through on claiming.

She cannot legally stop them from claiming it, as they can to it without her social, just her name, if she doesn't cooperate. But having her let them know the tax implications of filing might take care of the problem by itself.

In the future, she should know that it is to her benefit to get paid legally.

If the sitter runs a babysitting service and provides care to multiple families she IS an independent contractor and not employed by any one person/family.