Self-Employed Babysitter Taxes: When You Have to Pay

Babysitting is an essential service for parents. Thanks to people like you, parents all over can work to support their families while their children are cared for.

When tax season arrives, you might be wondering whether you have to pay babysitter taxes. Tax rules for babysitters vary based on whether or not you’re self-employed.

Fortunately, we’ve got answers to all your questions. Do babysitters have to pay taxes? What forms do you need to file? Keep reading to learn more.

Do babysitters have to report their income on taxes?

According to the IRS, babysitters do need to report their income when filing their taxes if they earned $400 or more for their work.

This income is basically from self-employment, so families don’t have to issue a 1099 unless a babysitter earns $1,000 or more in a calendar quarter  In this case, you might receive a Form 1099-NEC if you earned between $600 and $2,600 in 2023 or $2,700 in 2024. But regardless of if you receive a Form 1099-NEC you should always report all your earnings. 

Do babysitters have to pay taxes?

The answer to this question depends on how much you earned, your filing status, and which tax write-offs you qualify for. Generally speaking, babysitters have to pay federal taxes like anyone else.

If you have over $400 in net earnings from your work as a babysitter, you have to pay self-employed taxes. This rule applies to anyone who earns at least $400 from any form of self-employment.

As mentioned, the families you babysit for don’t always have to provide a 1099. Even if you don’t receive a babysitter 1099, you’re responsible for paying self-employed taxes if your income exceeds the threshold.

Do employers have to pay taxes for babysitters?

In some cases, babysitters may be considered household employees by the IRS. If you’re a household employee, your employer (the family for whom you babysit) is responsible for withholding taxes from your wages.

If you were paid $2,700 or more in 2024, they would have to withhold employment taxes since you would qualify as an employee.

There are some exceptions to this rule if the care is provided by a spouse, a child under 21, a parent in certain situations, or someone under 18 if babysitting wasn’t their principal occupation. 

Do babysitters need to file taxes?

Another question that comes up with earning money from side jobs, especially with teenagers (and their parents), is whether or not to file taxes on that income. There are some factors you need to consider, which can help you find the right solution for your situation.

The IRS has laid out thresholds for those required to file. In general, if you’re a dependent of someone else, you generally need to file if you’ve earned more than $14,600 from your work, or you’ve earned net income of $400 or more through self-employment, or your investment income is greater than $1,300.

If you’re not a dependent and earn $14,600 or more (if you’re single) and $29,200 or more (if married filing jointly), then you will need to file. While you may not be thrilled with filing taxes, there can be some benefits for you. You may be able to get a tax refund from what you had withheld from your day job paychecks, as well as additional tax benefits.

Which forms will you receive for babysitting taxes?

There are two forms you might receive if you work as a babysitter: Form W-2 and Form 1099.

You typically receive a 1099 form if you’re an independent contractor, but you may not receive a 1099 if you didn’t meet the annual payment limit or $1,000 in a calendar quarter. 

If you’re considered a household employee, your employer will withhold taxes and issue a W-2 at the end of the year. You can use your W-2 to file your tax return.

Keep in mind that you’re responsible for withholding your income and paying your taxes if you’re self-employed.

How to report babysitting income

When you receive taxable income as a babysitter, you need to report that income when you file your taxes. You can report babysitting income on Form 1040, Schedule C.

You also need to complete Schedule SE for Social Security and Medicare taxes — which make up self-employment taxes. Every self-employed individual has to file Schedule SE and pay these taxes.

If you’re a household employee, you’ll receive a W-2 that you can use to fill out Form 1040 and file your taxes. Keep your W-2 somewhere safe until you get a chance to file your taxes.

How do you calculate babysitter taxes?

Your babysitting taxes are based on the tax bracket you’re in. Each tax bracket pays a different rate on taxable income, with higher rates for taxpayers who earn more. You can use our tax bracket calculator to estimate your marginal tax rate.

Self-employment taxes include Social Security and Medicare taxes. The Social Security tax rate is 12.4%, and the Medicare tax rate is 2.9%. Only your net income is taxed.

How to pay estimated taxes on babysitting income

If you expect to owe taxes at the end of the year, you can pay estimated taxes. Estimated taxes are paid at the end of each quarter, making it easier to avoid big surprises when it comes time to file.

You can use Form 1040-ES, Estimated Tax for Individuals, to estimate your quarterly taxes.