I've done some babysitting and I've got to report it what all deductions can I get? ?

Question

I heard mileage & food are a deduction is there a limit amount for each child, I keep two brothers? Also what % should I be putting back for taxes in Texas?

Answer 1

Depends on where you take care of them.  If it is in your home, are you licensed?  If not, you cannot take deductions for food or office-in-the-home.  

Answer 2

You can write all business mileage. If you use your home as a daycare you write home owners insurance, utilities , mortgage interest and property equal to the percentage of square footage used for the day care. Warning, this could be a red flag for an IRS audit though. As for self-employment taxes, the social security tax is 12.4% and the medicare tax is 2.90%. So 15.3 % is the minimum amount of tax. If after deductions, your income is less than $400.00, no self employed taxed will be assessed.

Answer 3

you can only take a deduction for mileage if you use your vehicle FOR work, not the mileage it takes to get to work and back home.

does the babysitting involve shuttling the children to appointments etcetera?

how is food a part of your business?

do you provide meals for the kids as a part of the service?

you must report income to the IRS at least quarterly and and pay your taxes accordingly based on that income.

this link is for the schedule C which you will use to file your taxes you can print it off and see what types of expenses you can deduct.

http://www.irs.gov/pub/irs-pdf/f1040sc.p...

this link is for the instructions for the schedule C which you will need to understand how to complete the schedule as well as what types of documentation you must have.

http://www.irs.gov/pub/irs-pdf/i1040sc.p...

this link is for the IRS for filing your quarterly reports

http://www.irs.gov/faqs/faq9-3.html

for income taxes, social security and medicare you need to plan on at least 30% to be safe. you will know how much you need once you fill out the forms to estimate your quaterly filing. by being self employed you must pay all of your own social security and medicare the employer will not be paying one half like they would if you were an employee.