Do Babysitters Have to Pay Taxes on Income?
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If you’re earning money from babysitting — even as a teenager or someone doing it on the side — it’s not just pocket change in the eyes of the IRS. Whether you watch kids regularly or only on weekends, the money you earn is considered taxable income, and the tax implications can vary depending on how much you make and how the job is set up.
In most cases, the IRS classifies babysitters either as household employees or self-employed individuals. This classification determines who’s responsible for reporting the income and paying taxes. Understanding this early can help you avoid penalties and potentially even qualify for a tax refund or benefits like Social Security credits.
Are You a Household Employee or Self-Employed?
The distinction between being a household employee versus a self-employed babysitter often comes down to control. If you work in the family’s home and follow their instructions on how and when to care for their children, you're likely considered a household employee. In that case, the family is supposed to withhold and pay employment taxes if they pay you $2,700 or more in 2024, or $2,800 or more in 2025.
This includes not just your income tax but your share of Social Security and Medicare taxes. They’re also required to report your wages to the Social Security Administration, which helps you build eligibility for future benefits. On the flip side, if you babysit multiple families, set your own hours and aren’t supervised, the IRS likely considers you self-employed.
The $400 Rule: When You Must File as Self-Employed
If you're considered self-employed, the threshold for owing taxes is much lower. Earning even $400 in net self-employment income during the year means you're required to file a federal tax return and pay self-employment taxes. This includes Social Security and Medicare taxes at a rate of about 15.3%.
Even if the families you work for don’t give you a 1099 form, you’re still on the hook for reporting your earnings. This is a common point of confusion, especially for casual or part-time babysitters. The responsibility to report income doesn’t go away just because paperwork wasn’t provided.
What If You're a Teen or a Dependent?
Teenagers and students often think their income is too small to be taxed. However, the IRS has clear rules for dependents. If you're claimed as a dependent by your parents and earn more than $400 in self-employment income, you still need to file a tax return. You’ll also need to file if you earn more than $14,600 in total wages or have more than $1,300 in investment income.
The good news? Filing taxes might actually help you. If you had taxes withheld from a part-time job, you may get some of that money back as a refund. Filing can also start building your Social Security record if your earnings are reported correctly.
When Employers Don’t Have to Withhold Taxes
There are exceptions to these rules. If you babysit for a relative, are under 18, and it’s not your primary job, or provide care as a parent or spouse, the IRS may not require the family to withhold taxes. However, even in those cases, the money you earn might still be considered taxable income on your part. So, while the paperwork might be lighter, the reporting responsibilities often still fall on you.
Why Reporting Babysitting Income Matters
It may be tempting to keep babysitting income off the books, especially for small jobs, but doing so can hurt you in the long run. Accurate reporting means you can qualify for credits, refunds and eventually Social Security benefits. For those turning babysitting into a side hustle or part-time gig, treating it like a real job can have real financial benefits.
If you’re not sure how to file or whether you need to, it’s worth getting guidance from a tax preparer or using trusted software. Babysitting may be flexible work, but tax rules around it are anything but casual.