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Natalator1069 Asked January 2021

I get paid to care for my bf”s mother. Do I need to claim this income on my taxes and if so where?

The tax websites want to charge me for tax help when I ask them this question.

bicycler Jan 2021
Natalator1069, self-employment earned income is generally subject to both income taxes and SocialSecurity/Medicare taxes, but unless your total annual "taxable" income (earned plus other) exceeds the federal standard deduction ($12,400 for a single person in 2020), you won't owe any federal income tax (and probably not state income tax, either). However, if your self-employment earnings exceed $400 annually, you will owe Social Security/Medicare taxes totaling 15.3% of that income. Kudos to you for taking care of your bf's mother. Best wishes.

Stacy0122 Jan 2021
Yes, you need to file a Schedule C which is a Profit or Loss for a business.

You need to do a spreadsheet ASAP of income and eligible expenses. You should have sent in an estimated payment in by Jan 15th for taxes due.

Going forward, you should be a W2 employee.

If you have specific questions, ask.

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AlvaDeer Jan 2021
Keep meticulous records. I would get help with your taxes this year. This is not something you can afford to do wrong. Keep all receipts. Pay for caregiving is often so small that you do not earn income large enough to even DO taxes, but that is for the experts to know. I only pay 150.00 to get my taxes done. It is money well spent.

Geaton777 Jan 2021
I hope they are paying you with a check or some other way to follow a paper trail. If they give you cash you should give them a receipt that you both sign with the date and what the cash payment was for and keep a copy for yourself. Or you can use Venmo or Paypal but make sure to note what the money is for.

freqflyer Jan 2021
Natalator 1069, I found this on Google search: Other income is reported on line 8 of Schedule 1 of the 2020 Form 1040, then the total from line 9 of Schedule 1 is transferred to line 8 of the 1040 itself.

If you have other IRS questions, type your question into Google, or contract the IRS by calling 1-800-829-1040, the line is open 24 hrs a day.
Stacy0122 Jan 2021
Other income on Schedule 1 one are things like cancelled debt or foreign income not wages.

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