"basilgirl" <basilgirl1...[at]msn.com> wrote:

- quote -

First, be aware that anyone who pays a "household worker"
(e.g., babysitter) more than $1,500 a year is supposed to
withhold income and Social Security taxes and provide a W-2.
Presumably your niece's parents did not do this.

As such, you do not just add this to your tax return as
"extra income." The $3,900 is reported on Schedule C as
self employment income ("Babysitting"). You can also use
this form to deduct any related expenses to reduce your net
income. You must also file Schedule SE to compute the
Social Security taxes.

Your Federal income tax will be at whatever your joint
marginal tax rate may be plus you will be taxed at 15.3% for
Social Security taxes (about $600 in this case), plus State
taxes.

In 2006, you needed $970 in net self employment income to
earn 1 Social Security credit ($1,000 in 2007). If your
entire $3,900 is taxed for Social Security purposes, you
will earn 4 credits.

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"basilgirl" <basilgirl1...[at]msn.com> wrote:

- quote -

Schedule SE

Missy Doyle

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- quote -

Report these "self-employment" receipts on Schedule C-EZ and
reduce them by any relevant expenses there.

Then use Short Schedule SE. Its self-employment tax goes to
SS and Medicare.

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basilgirl1212[at]msn.com (basilgirl) posted:

- quote -

You are providing daycare services, and in that capacity you
are self-employed. Whether you received a 1099 or not, you
should file a Schedule C (or C-EZ, if expenses are minimal),
and the companion SE -- which calculates Social Security and
Medicare contributions required for the amount of income
reported.

That should get you the credit you desire for having paid
into Social Security.

Bill

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"basilgirl" <basilgirl1212[at]msn.com> wrote:

- quote -

It depends on whether you were an employee or an independent
contractor. In the case of child care, IMO it boils down to
whether you cared for the child in the child's home or in
yours.

If you went to the child's home you were an employee. The
parent needs to issue a W-2 and pay the FICA/Medicare taxes.
You report the income on line 7 just like any other wages.
Your SS earnings credit comes from the original W-2, which
is filed with SSA.

If you cared for the child in your home, you have Schedule C
income from self-employment, not line 7 wage income.
Schedule C flows to Schedule SE, where you compute
self-employment tax. It's from Schedule SE that you get
your SS earnings credit.

--
Phil Marti
Clarksburg, MD

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basilgirl wrote:

- quote -

Did you perform this child care in your own home (child
brought to you?) or did you work in the home of the child?

If the former, then you file schedule c and schedule se for
self employment tax.

If the latter, then you should have received a W2 form from
the child's parents, i.e. your employer.

ChEAr$,
Harlan Lunsford, EA n LA

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basilgirl wrote:

- quote -

You use Form 1040 Schedule C-EZ to report your
self-employment income and any business expenses. The net
income from the C-EZ goes on Schedule SE where you compute
your self-employment taxes (social security & medicare tax).
The SE tax gets posted to page 2 of the 1040; 1/2 the SE
tax gets posted to the front page of the 1040 as an AGI
deduction. The SSA will give you retirement credit based on
those amounts.

--
Alan
http://taxtopics.net

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"basilgirl" <basilgirl1...[at]msn.com> wrote:

- quote -

Use Schedule C and Schedule SE. Both are available for
download at
http://www.irs.gov/formspubs/lists/0,,id=97817,00.html.

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I started watching my niece in Jan 2006, and was paid a
total of 3900 dollars last year. I am filing married filing
jointly. I filed this amount on my taxes as extra income not
on w-2 (HSH 3900). The 1040 just combines my husband and my
income. I need my 4 SS points this year and don't know how
they will distinguish my income without a w2 or 1099. IHow
do I pay SS tax on my 3900 dollars and have them count it as
my income?

Thank you!
Alysia

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