I am a nanny working for a family who does not take taxes out of my paycheck. How do I properly pay my taxes and what forms will I need?

Hello j:

In addition to your 1040 form, you'll need to fill out a schedule "C". Do this after January 31, 2008 and before April 15. IF there's an amount due on your 1040 form, send a check along with your return.

Simple, really.

excon

Also since you will be filing a schedule c keep all receipts of money you have spent on this "business" anything aout of pocket. Ex. Gas receipts

I wish it were that simple, but it is NOT.

Your employer may decide to deal with this by filing Schedule H with their annual tax return.

If so, you need to wait until that is done, because they will then generate a W-2 for you to use when you file your tax return.

If they do NOT file the Schedule H, but instead give you're a Form 1099-MISC, then (and only then) will you file a Schedule C AND a Schedule SE. Keep the receipts as advised, but note that your transportation expenses to and from thefamily's home are COMMUTING expenses, which are NEVER deductible.

I strong suggest you sit down with your employer and talk this over with him/her, because if they go the Form 1099-MISC route, you will end owing a rather large tax bill come April 15th, 2008.