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Oneill474
Feb 8, 2010, 06:21 PM
Neighbor's Teenage baby sitter(18) makes about $3,300
Annual. She did not keep any records. Just an estimate. She is paid in cash. Does she need?
To file. Two conflicting statements on filing
Classifications are puzzling. Which is it?

If you file as single and you're under age
65. You must file a return if you're gross
Income is at least $9,350.00

Or
Self-employed persons must file a return if your gross income meets the age, income, and filing status criteria above, or if your net earnings from self-employment totaled $400 or more. Self-employed persons who have church employee income of $108.28 or more must also file a return


My guess is she does not have to pay any income taxes. But she must file, because she made more than $400.00. She probably has to to pay self employment taxes, 15.3% for social security and Medicare?

cdad
Feb 8, 2010, 06:31 PM
What is the age of the person your asking about and do you know if they are being claimed as a dependent by someone else?

MukatA
Feb 9, 2010, 01:50 AM
Paid in cash is treated as self employed income. She is required to file as income is $400 or more.

You are self employed or independent contractor. You will report your income and business related expenses on schedule C or C-EZ (Form 1040). Then you put net income (or loss) on line 12 of Form 1040. This income is subject to SE tax at 15.3% (this is shown on line 57 of Form 1040). Your U.S. Tax Return: Tax Filing by Self Employed Sole Proprietor or Independent Contractor (http://taxipay.blogspot.com/2008/04/tax-filing-by-self-employed-sole.html) //With 1099-misc you will end up paying about 6.2% more taxes as compared to W-2 employee. The benefit is that if you have job related expenses, you can deduct them.