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giani513 · Feb 11, 2008, 09:50 PM

I am a stay-at-home dad. I babysit another child at his home 25 hours a week, making $250 per week. The family is from Israel. My wife and I want to do taxes, but they haven't done their paperwork to claim they have a "nanny" working for them. Do I claim my earnings or not? I never filled out any paperwork when I was hired, so no W2. We are just afraid that if we do claim we will get screwed. Please help! Thanks... I know it is a busy time of year for you.

morgaine300 · Feb 11, 2008, 11:09 PM

Yes, I'm busy but not because of taxes, cause I don't do them. :-) (The main thing I learned in my tax accounting classes was that I didn't want to do taxes. LOL.)

Publication 525 (2007), Taxable and Nontaxable Income

Second big section down, it's the first one listed under Employee compensation.

Keep in mind, this is the correct answer. Whether you count it or not is your own problem - I just wouldn't go around telling the public about it. :-) Whether the family you are babysitting for has done the proper stuff for their end of this is not your problem, unless of course you want it to be. And logically, any time you count extra income you get screwed, of course.

If you're going to actually count it, remember to keep track of all your expenses involved. I think you can also count business use of your home, but the rules for babysitting are different. If you're going to do this, you might rather post this on the tax forum to draw attention to someone who specializes in that subject.