D. Stussy wrote:

- quote -

Probably exempt from the W-2 requirements, unless one
employer paid more than $1400 to her in a year, or more than
$1000 to all household employees in a quarter. No, it's
line 7, with "HSH" and the dollar amount on the dotted line.

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- quote -

Yes

- quote -

When studying employment tax law I must have missed the fact
that this is a consideration that trumps all others. Using
this logic anyone who put a "position wanted" ad in the
paper would be an independent contractor if more than one
person hired him for part-time positions.

IC vs. employee requires looking at the entire situation,
and I'll stick with what I said before.

Phil Marti
Clarksburg, MD

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- quote -

OK, so if a [professional] babysitter were to sit for 100
different households, would you really be expecting him/her
to recieve 100 W-2's?

Holding one's self out to the public favors an IC
relationship over employment.

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D. Stussy wrote:
- quote -

I can't quote IRS regulations on this, although I'm sure
there are some -- however, CA is quite clear that a
babysitter working in the client's home and babysitting only
for the client's children is a household employee, and
cannot be an independent contractor.

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- quote -

One client or a hundred, babysitting in the client's home
is, to me, the perfect example of an employer/employee
relationship. The parents provide the workplace, set the
hours, prescribe the activities, and provide the tools. How
in the world could one consider the sitter to be an
independent contractor?

Phil Marti
Clarksburg, MD

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Arthur L. Rubin wrote:
- quote -

If there is only one household per year this is done for,
then OK (although I will really say that there isn't enough
information technically to answer the employee/IC issue).
However, do this for multiple households and I see an IC,
not a household employee.

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D. Stussy wrote:
- quote -

I do. Babysitting in the client's home is almost always as
an employee, rather than as a contractor.

Car repairs and PC service are more likely to be as a
contractor, as the OP supposedly has expert knowledge, and
is not directed as to how the work is to be done.

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mytax[at]adams.net wrote:

- quote -

I don't see a distinction in the nature of the two incomes.
Why not both on [separate] schedule C's (or C-EZ's)? That's
what I would consider as the correct way. It doesn't matter
that her income was less than the SE Tax threshold.

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crlackey wrote:

- quote -

You and your wife each fill out a schedule c-ez and bottom
line will tell you where to go from there. Both profits
are income taxable, but only yours is subject to social
security (SE) tax.

ChEAr$,
Harlan Lunsford, EA n LA
Mon, 10 Jan 2005

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crlackey wrote:

- quote -

Line 21 (arguably not subject to SE tax) for you. Line 7
with the notation "HH" for money your spouse earned
babysitting in the kids' own homes, Line 21 (arguably not
subject to SE tax) for the remainder.

Phoebe

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crlackey wrote:

- quote -

You each need to prepare a Schedule C-EZ to report the
income and any expenses. That form is used if your expenses
are less than $5000 for the year. As it seems that your "Net
Profit" will be over $433, you also have to fill out
Schedule SE for the self employment taxes due. Your wife
will need the Schedule C-EZ, but not the Schedule SE.

The numbers will transfer to your joint 1040 form, as
directed on the Schedules.

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Wife's income will go on line 21 (other income). Your
income should go on a schedule C -EZ and also on a Schedule
SE. The Sched. C or C-EZ will flow to line 12 on the Form
1040. The SE tax will flow to line 57 of the form 1040.

Missy Doyle

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I think this situation is like occasional baby sitting.

I am retired and surviving on a small pension and SS.

Occasionally I earn extra income performing minor car
service and PC service. For 2004 I collected around $1,200.
Spouse collected probably less than $200 this year for
occasional baby sitting, sometimes at home, but usually
elsewhere.

We do not itemize deductions.

I have no trackable expenses or overhead that's obvious.

I know this is "other income" that needs to be taxed at the
state and federal levels. How do I report it?

Carl

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