how to file self employment when paid by checks
I nanny for a job and not sure how to file this year
Answers
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The family I nanny for are not filing this as tax either
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This depends on whether or not you are considered an employee of the family you nanny for. The main difference is whether or not the person paying you "can control not only what work is done but [also] how it is done."
In many cases, nannying is considered independent contractor or self-employed income, which is reported on Schedule C. In our software, you can find that in the Business Income section.
For more information and examples on employees vs. self-employed workers, you can view this IRS link on hiring household employees.
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Hello,
Generally speaking, nannying is considered self-employment income, which would be reported on a Schedule C on an individual tax return (form 1040). Unless the family you work for considers you an employee and issues you a form W-2 for your yearly income, then this would most likely be the case and would be reported on a Schedule C. To find where to report this in our tax-filing software, make your way to the "Business Income (Schedule C)" section in the software, under the "Income" menu. When reporting this in the software, you will be asked some brief information about what this work you did entails, then you will be asked about any income you received for this work as well as any related expenses you may have incurred.
The following IRS site provides additional information that may assist you in determining whether or not this is considered self-employment income and how it should be reported:
