Do I need to report income I received from childcare on my taxes?

I watched my nephews for 3 months in the summer. The total I was paid was less than $1000. Do I need to report something on my taxes? My sister wants to claim childcare expenses. What do I do? If I do need to report it, what do I do if I already filed my taxes?

Public Comments

1. yes you report the income because that is what it is - income. if that is all the money you made you won't have to pay any taxes on it but you must report it especially if your sister claims it. it does you no harm but she will benefit which she should. you only pay taxes on it if your income exceeds your personal deduction.


2. Yes you do. You file Form 1040 and report it and your business expenses on Schedule C or C-EZ. If the net profit is $400 or more, you attach Schedule SE to calculate the self-employment tax.

   If you already filed your taxes you must now file an amended return using Form 1040-X. Attach the Schedule C or C-EZ and Schedule SE to it and enclose a check or money order for payment of the tax due.



3. You amend and state the facts. If you worked in your sister's house, you don't need to have gotten a W-2, just list as income.

   See IRS pub 926.