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If I work under the table as a baby sitter, is there a way that the parents can claim a portion of what they pay me without me having to pay a lot in taxes when we file?

Forum|Forum|6 years ago
June 1, 2019
11 replies
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I'm trying to help out my friend by watching her 4 children while her and her husband are at work. I am a stay at home mom and my husband claims me and our children as dependents. Is there a monthly limit or amount that she claim without me having to pay a lot in taxes? So she can claim the childcare credit but then I only have to pay a small amount or none at all in taxes when we file next year. I did it a few years back with my sister and I can't remember what the amount was or is.

Best answer by tpoock

There are a couple of issues that may affect you. If you are paid more than $2000 (in 2016) for the year, you may be considered an employee. If you are an independent contractor, that does not apply. The difference can be complex and you should seek personal assistance.

If you are an independent contractor, you need to claim all your income as self employment income. In addition, if you make more than $400 (from all sources), you will have to pay self employment taxes. That's a bit over 15%. (This is probably the limit you were looking for).

Those paying you can claim up to $6000 a year in Dependent Care Credit, if their children meet the age and other requirements.